Agilent Investing $725 Million to Expand State-of-the-Art Manufacturing Capacity for Production of Nucleic Acid-Based Therapeutics
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan 9, 2023--
Agilent Technologies Inc. (NYSE: A) today announced it is investing approximately $725 million to double manufacturing capacity of therapeutic nucleic acids in response to rapid growth of the $1 billion market and strong demand for the company’s high-quality active pharmaceutical ingredients (API).
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A rendering of the proposed manufacturing facility in Frederick, Colorado. Agilent expects customer shipments from the new facility to begin in 2026. (Photo: Business Wire)
Therapeutic nucleic acids, also called therapeutic oligonucleotides or oligos, are short DNA and RNA molecules that serve as the API for drugs targeting a growing number of diseases, including cancer, cardiovascular disease, and rare and infectious diseases.
“This investment reflects not only the strong demand for therapeutic oligos, but also for the unmatched quality and service of our therapeutic oligo contract development and manufacturing organization (CDMO),” said Mike McMullen, Agilent president and CEO. “It’s yet another example of our focus on investing in high-growth markets while also delivering on Agilent’s mission of improving the quality of life.”
The market for therapeutic oligos is currently estimated at $1 billion and is projected to grow in the double digits annually over the next five years, reaching $2.4 billion in 2027. The addition of two new manufacturing lines (known as Trains C and D) will enable Agilent to meet growing demand for siRNA, antisense and CRISPR guide RNA molecules. Agilent expects customer shipments from the expansion to begin in 2026.
“One of our strategic priorities is to help existing and new biopharma customers develop, globally commercialize, and accelerate growth of oligo-based therapeutics,” said Sam Raha, president of Agilent’s Diagnostics and Genomics Group. “This additional capacity will enable us to meet strong demand for siRNA and antisense molecules and also significantly increase the number of CRISPR guide RNA programs we can take on.”
The new Train C and D manufacturing lines will be based in Agilent’s Frederick, Colorado facility, where a Train B manufacturing line, announced in 2020, will go live later this year.
Agilent’s therapeutic oligo facilities follow current good manufacturing practices (cGMP), and the expanded facility will employ advanced automation and engineering enhancements, including water reduction and solvent capturing and recycling. Read more about Agilent’s oligo API development and manufacturing services and background on oligos for therapeutics in Agilent’s media room.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is a global leader in the life sciences, diagnostics, and applied chemical markets, delivering insight and innovation that advance the quality of life. Agilent’s full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers’ most challenging questions. The company generated revenue of $6.85 billion in fiscal 2022 and employs 18,000 people worldwide. Information about Agilent is available at www.agilent.com. To receive the latest Agilent news, subscribe to the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook.
Forward Looking Statements
This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, statements regarding the capabilities the manufacturing capacity expansion brings and the assets’ future uses. These forward-looking statements involve risks and uncertainties that could cause Agilent’s results to differ materially from management’s current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent’s customers’ businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; and customer purchasing decisions and timing. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; the adverse impacts of and risks posed by the COVID-19 pandemic; and other risks detailed in Agilent’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal quarter ended October 31, 2022. Forward-looking statements are based on the beliefs and assumptions of Agilent’s management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.
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SOURCE: Agilent Technologies Inc.
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PUB: 01/09/2023 08:45 AM/DISC: 01/09/2023 08:46 AM