BeiGene, a Chinese biotech company, and Guangzhou GET Technology Development, an affiliate of Guangzhou Development District, will partner in the development deal to construct a commercial scale biologics manufacturing site in Guangzhou, China. The deal sees Guangzhou GET contribute $150 million in cash while BeiGene will provide $30 million, the rest of the $150 million will be provided through commercial loans.
BeiGene is developing a pipeline of cancer medications that will focus on its lead candidate, a BTK inhibitor, a PD-1 drug and a PARP inhibitor. The Chinese government is encouraging the growth of research within oncology and especially within biotech companies, providing loans and subsidies to increase expertise and research within the field.
We attach great importance to this project and believe that the successful introduction of BeiGene Biologics will transform Guangzhou Development District into a centre for the innovative biopharmaceutical industry, promote the development of the biotechnology industry in the region, and provide a powerful driving force for economic transformation and upgrade. The government will provide strong support in funding, management service, and creating a good business environment, commented the Administrative Committee of Guangzhou Municipal Government and Guangzhou Development District.
As part of the manufacturing facility, the site will also help to support BeiGeneâs R&D activities to help bring biologic drugs through to clinical development and the Chinese market. The building of the site is expected to begin this year.
It is our strategic priority to secure high-quality large-scale manufacturing capacity based on the increasing biologics opportunity we envision in China and global markets. We believe the joint venture will provide a valuable asset for our long-term growth, commented John V. Oyler, Co-Founder, Chief Executive Officer, and Chairman of the Board of BeiGene.