AstraZeneca invests US$2.5B to expand R&D footprint in China

CHINA—AstraZeneca has made a US$2.5 billion investment in Beijing to establish a new strategic research and development (R&D) center, expanding its footprint in China and marking its sixth such hub worldwide.

This commitment comes shortly after AstraZeneca agreed to acquire FibroGen’s China subsidiary for approximately US$160 million, granting them complete control over the anaemia drug roxadustat in China, further solidifying their growth strategy in the region.

This long-term initiative, set to extend until 2029, is underpinned by a strategic alliance with the Beijing municipal government and the Beijing Economic-Technological Development Area Administrative Office.

The new R&D center will prioritize early-stage research and clinical development, enhanced by data science and an AI lab.

It will be situated in the Beijing International Pharmaceutical Innovation Park, near the National Medical Products Administration, biotechs, and research hospitals.

The expansion is projected to increase AstraZeneca’s workforce in the region to 1,700 employees.

 AstraZeneca is also actively cultivating partnerships within China, including a strategic collaboration with the Beijing Cancer Hospital, which focuses on data science, translational research, and clinical development.

Furthermore, the company is entering into licensing agreements with Harbour BioMed for the discovery of multi-specific antibodies and with Syneron Bio for the development of macrocyclic peptides.

Pascal Soriot, CEO of AstraZeneca, emphasized that the investment reflects the company’s confidence in Beijing’s life sciences ecosystem, the opportunities for collaboration, access to talent, and commitment to China.

He noted the R&D center would integrate advanced biology and artificial intelligence, playing a pivotal role in the company’s global mission to deliver innovative treatments to patients worldwide.

The partnership with Harbour BioMed involves AstraZeneca making a US$105 million equity investment.

 Harbour BioMed will receive US$175 million in upfront and near-term milestone payments, with the potential for up to US$4.4 billion in further payments.

AstraZeneca will acquire 9.15% of Harbour BioMed’s newly issued shares, with the agreement including an option to license several programs utilizing Harbour’s Harbour Mice fully human antibody technology platform across various therapeutic areas.

Similarly, the strategic partnership with Syneron Bio includes AstraZeneca offering upfront and potential near-term milestone payments of US$75 million and up to US$3.4 billion in additional payments.

AstraZeneca’s equity investment in Syneron Bio will support the expansion of its Beijing R&D center, providing AstraZeneca access to Syneron Bio’s Synova platform, a macrocyclic peptide drug research and development platform.

In addition, AstraZeneca is launching a joint venture with BioKangtai to develop, manufacture, and commercialize vaccines for respiratory and infectious conditions.

Located in the Beijing BioPark, this facility will be AstraZeneca’s only vaccine manufacturing site in China.

This significant investment highlights AstraZeneca’s dedication to strengthening its presence in China, a crucial market for the pharmaceutical giant.

This is despite previous scrutiny from regulatory bodies regarding import duties and the detention of its former China head.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and beyond. Also, follow us on our WhatsApp channel for updates.