Fujifilm Diosynth Biotechnologies will receive “aggressive” investment over the next three years from its parent company to lift revenues, as the CDMO arm emphasizes its track record and “trust” as selling points to clients.
Fujifilm Holdings spelled out its vision for growth up to 2030 on Wednesday and, if executed as planned, Fujifilm Diosynth could rake in as much as 700 billion yen ($4.5 billion) in revenue by 2030, which is a 40% increase from 2023. Fujifilm will capitalize on the high demand for commercial manufacturing of antibody-drug conjugates, according to the presentation.
Fujifilm said it will solidify trust by ensuring it meets client demands, quick technology transfers and agility to change. The CDMO industry is closely following the draft Biosecure Act — allegations surfaced last month that WuXi AppTec passed intellectual property owned by one of its US clients to Chinese authorities.
While the Japanese conglomerate did not spell out how much it will invest, it said its CDMO arm will have a separate approach for its large-scale manufacturing from its small- to medium-scale production offerings.
The CDMO’s large-scale manufacturing will first focus on a “smooth” launch of its new sites over the next three years and then build out in the following years. Last week, Fujifilm Diosynth announced that it is pouring $1.2 billion to expand its large-scale capacity in Holly Springs, NC.
According to Fujifilm, the ADC market is growing rapidly, with an increase in demand for outsourcing. As such, the CDMO said it will expand large-scale capacity by cloning “highly productive” facilities “at a faster speed than other companies.”
As for its small- and mid-scale offerings, which cover antibody drugs, cell and gene therapies and recombinant proteins, the market is stagnant overall because of slow biotech funding, the company said.
But Fujifilm expects biotech funding to recover in the late 2020s and will execute “structural reforms” over the next three years. On Tuesday, the CDMO said it is going to restructure its small-scale business unit and may lay off as many as 240 workers. It said it will be converting production tanks for gene therapies for antibody drugs.
Fujifilm Diosynth said it will rely on new customers to boost revenues for its small- to mid-scale operations. In 2026, it plans to launch an “end-to-end” ADC service in Japan that would include antibody, conjugation and drug formulation services, to help it find “partners for life.”