Immunity Bio has leased a recently built US manufacturing facility from Athenex as part of an effort to expand its manufacturing capacity.
The facility in Dunkirk, New York houses ISO Class 5 clean rooms for upstream and downstream manufacturing, as well as fill and finish and large-scale freeze-drying capabilities.
Under the deal Immunity Bio will provide contract manufacturing capacity at the facility to Athenex.
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The lease agreement will see Immunity Bio pay Athenex $40 million according to reports in the local press. It also requires that Immunity Bio assume the investment and employment commitments of Athenex pursuant to its agreements with the State.
The deal is expected to close in the first quarter of 2022 and is subject to customary closing conditions which include, Immunity Bio said, that it obtains “consent of certain 3rd party organizations and a lender of Athenex.â€
Network expansion
Immunity Bio CEO Richard Adcock said the agreement is part of the firm’s wider expansion programme.
“This facility provides production capacity at a significant scale here in the US and at significantly lower capital cost than building a facility like this from the ground up.
“It is an important component of our overall strategic growth plan, accelerating our ability to develop, prove, and bring to market our most promising products and therapies in competitive and regulated markets.”
Manufacturing network
The facility expands the immunotherapy developer’s network of manufacturing facilities, which includes sites in the US, South Africa and Botswana.
This was acknowledged by Patrick Soon-Shiong, Immunity Bio founder, who said, “With our acquisition of the interest in the Dunkirk Facility, Immunity Bio will have access to nearly a million square feet of manufacturing and R&D space.â€
Immunity Bio also announced plans to invest in the plant to add biological manufacturing equipment and transferring technology from its facility in California to the plant.
The firm expects to begin making drug substance for its COVID-19 vaccine candidates in the final quarter of the year.