Kyowa Kirin to build $530 million facility in NC

Japan-based pharmaceutical company Kyowa Kirin recently announced plans to build a new biologic facility in Sanford, NC. When built, the facility will cover 171,700 square feet and have two reactors that will speed the development and production of biological therapies for patients with rare and serious diseases.

The disruption of supply distribution lines during the COVID epidemic has prompted yet another company to invest in a production facility in the U.S.

Biologic therapies will be the focus

The facility will manufacture biologic therapies for the company’s planned clinical trials and future commercial use and create more resilient supply lines. The planned 75-acre campus in Sanford, NC, will allow for future expansion.   

Construction of the facility will begin this year and is expected to be fully operational by 2027. Kyowa Kirin’s investment of up to $530 million will be supported by Leaders in the Tarheel State, who wholly back the facility plans and provide $10 million in performance-based state and local incentives to Kyowa Kirin over 12 years. According to the North Carolina Department of Commerce, the investments should grow North Carolina’s economy by $1.05 billion over 12 years. 

The plant is expected to create more than 100 new high-paying local jobs, with an average salary of $91,496. 

Research Triangle sweet spot

Kyowa Kirin said part of the reason the company chose North Carolina is the area’s existing base of skilled workers.

“The extraordinary complexity of the medicines we manufacture requires specialized skills and resources that are in plentiful supply in Sanford and the Research Triangle region,” said Paul Testa, Executive Vice President, Regional Head of North America/EMEA Manufacturing, Kyowa Kirin North America. “We’re excited to collaborate with area colleges, universities, businesses, and civic leaders to ensure that our plans align with Sanford’s vision for growth, anchored in a rejuvenated manufacturing economy that offers diverse job opportunities and returns value to the community.”

Another impetus behind this considerable investment is the company’s desire to help treat rare diseases that affect hundreds of millions of people worldwide.

“Our North American presence continues to grow through strategic investments that are adding new capabilities, new therapeutic expertise, and new talent to our global organization, all in service of meeting patients’ needs,” said Steve Schaefer, Kyowa Kirin North American President. “Among the many qualities that drew us to North Carolina are our shared values, such as harmony and teamwork—known as Wa—which is deeply ingrained in our culture at Kyowa Kirin, evident in our longstanding corporate partnerships, and fundamental to high-quality pharmaceutical manufacturing.” 

Kyowa Kirin’s global manufacturing network includes sites in Takasaki City, Gunma Prefecture, Ube City, and Yamaguchi Prefecture in Japan.

The planned facility in North Carolina’s Research Triangle Park region, home to universities and community colleges offering specialized curricula and training, will enable the company to tap the human talent available there. Kyowa Kirin will also benefit from the network of biomanufacturing resources already present.

The Research Park Triangle is home to many pharmaceutical companies, including Impact Pharmaceutical Services, Cloud Pharmaceuticals, Inc., PharPoint Research, Inc., Aerie Pharmaceuticals Inc., and others. The area also has about 450 life science companies, including Eli Lilly, Novartis, and GlaxoSmithKline.

Advancing methods through investment

Kyowa Kirin’s investment in North Carolina will enhance the company’s manufacturing productivity by building upon its methods and technologies. 

“The new facility will be scalable with our Takasaki Plant in Japan to help ease technology transfer between the two plants and add production capacity. We believe this will help accelerate drug development and production,” said Toshiyuki Kurata, Chief Supply Chain Officer, and Global Manufacturing Head at Kyowa Kirin.

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