VaxGen Forms Joint Venture to Build Manufacturing Facilities in California and South Korea
Facilities Designed to Support Potential Regulatory Approval and Commercial Manufacture of VaxGen's AIDS Vaccine
27-Feb-2002
BRISBANE, Calif. and SEOUL – February 25, 2002 – VaxGen, Inc. and a group of South Korean investors today announced the Formation of a joint venture, which will invest approximately $120 million to build and operate a facility in Incheon, South Korea, to manufacture VaxGen’s AIDS vaccine. The joint venture, through the same $120 million investment, will also fund construction of a smaller facility in South San Francisco, Calif., to support licensure and commercial launch of the vaccine. Both facilities will be used for commercial manufacture of the vaccine, AIDSVAX, if it proves safe and effective and is licensed by the U.S. food and Drug Administration.
The South Korean investors participating in the joint venture, known as Celltrion Inc., are Nexol Corp., Korea Tobacco & Ginseng Corp., and J. Stephen & Co. Ventures Ltd.
VaxGen will provide mammalian cell culture technology and biologics production expertise to Celltrion, but no cash, in Exchange for a 44 percent interest in the joint venture. VaxGen is Celltrion’s single-largest shareholder. The South Korean partners will provide the funding necessary to design and construct both facilities and to validate and operate the Incheon facility. The Incheon facility will be built on approximately 26 acres of land sold to Celltrion by the city of Incheon at a discount to prevailing market rates.
In its first phase of development, the Incheon facility is expected to be capable of producing up to 200 million doses of AIDSVAX per year. The smaller facility in South San Francisco could produce up to 10 million doses of the AIDS vaccine per year and may also be used to develop other pharmaceutical products. Celltrion expects to complete construction of the smaller facility by the middle of 2003 and the Incheon facility by the end of 2003. Additional time will be required to validate and license each facility.
“The formation of this joint venture builds extraordinary value for VaxGen and our South Korean partners,” said Lance K. Gordon, Ph.D., VaxGen’s chief executive officer. “Celltrion supports our goal of expediting the approval and commercial introduction of AIDSVAX if it proves safe and effective about a year from now. Both facilities will also support VaxGen’s intention to broaden its pipeline through the development and manufacture of additional products of its own design or those of third parties.”
Donald P. Francis, M.D., D.Sc., VaxGen’s president said: “VaxGen looked at numerous manufacturing alternatives around the world and we believe this one is clearly the most advantageous. Our South Korean partners, including the city of Incheon, are committed to the goal of improving global health through the possible introduction of AIDSVAX, and we look forward to a long and productive relationship with them.”
Both facilities will be designed to manufacture not only AIDSVAX but a variety of human therapeutic proteins using mammalian cell fermentation. In its first phase of development, the Incheon facility will include four commercial-scale bioreactors. Celltrion will have the option to expand the facility to a total of 12 bioreactors.
Other news from the department business & finance
Get the life science industry in your inbox
From now on, don't miss a thing: Our newsletter for biotechnology, pharma and life sciences brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
Most read news
More news from our other portals
See the theme worlds for related content
Topic world Cell culture technology
Cell culture technology is a central pillar in biotechnological and pharmaceutical research and development. It enables the growth and maintenance of cells under controlled laboratory conditions, providing a window into the molecular and cellular processes of life.
2 products
5+ whitepaper
2 brochures
Topic world Cell culture technology
Cell culture technology is a central pillar in biotechnological and pharmaceutical research and development. It enables the growth and maintenance of cells under controlled laboratory conditions, providing a window into the molecular and cellular processes of life.
2 products
5+ whitepaper
2 brochures
