Genzyme To Build $90 Million R&D Center in Beijing

Genzyme Corp. (Nasd: GENZ) became the first of the major US-based biotechs to announce it would establish its own R&D center in China. Genzyme will invest $90 million to construct a 200,000 square foot R&D facility in Beijing’s Zhongguancun [ZGC] Life Science Park. The center, expected to open in 2010, will eventually employ 350 people.

Besides its original Cambridge, Massachusetts R&D center, Genzyme has also built an R&D facility outside the US in Cambridge, UK.

The Beijing facility will house laboratory-scale operations for the MACI® (matrix-induced autologous chondrocyte implantation) cell therapy and polyclonal antibody operations. Genzyme acquired the MACI cartilage repair product in 2005, when it acquired Verigen AG. MACI supports a less-invasive delivery method than Carticell, Genzyme’s current cartilage repair product. A large-scale European trial is expected to begin soon. Genzyme previously established a pilot program at Beijing Wujing Hospital for MACI.

The Beijing center will also work on Genzyme’s other areas of interest, including orthopedics, transplant and immune disease, oncology, endocrinology and cardiovascular disease.

Genzyme currently markets two products in China: Synvisc® (hylan G-F 20) and Thymoglobulin® (anti-thymocyte globulin rabbit). It expects to introduce additional products next year. Also, since 1999, Genzyme has provided to free of charge to Chinese patients its treatment for Gaucher’s disease, Cerezyme® (imiglucerase for injection). Gacuher’s disease is a rare inherited genetic disorder that causes a deficiency in the glucocerebrosidase enzyme. About 125 patients are being treated in China through the Gaucher Initiative.

In 2007, Genzyme entered a collaboration with the China firm Sunway Biotech Co. Ltd. Although Sunway Biotech focuses on cancer drugs, the collaboration seeks to build on Sunway’s expertise in gene therapy to find treatments for cardiovascular disease. Genzyme says it is continuing to seek additional partnerships with China biopharmas.

Genzyme already has 25 employees working in its Beijing and Shanghai offices.

The Beijing facility will pay considerable attention to the principles of green design. Designed by RMJM Hillier, it will feature a living roof, solar thermal system for hot water, low-flow fixtures and walls of glass to allow natural light. Genzyme will seek certification for the building with the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system.

Disclosure: None

Comments

[AmesTiedeman]

Wait 25 years, all the Chinese will want top health care. The futures is huge. JNJ can make a fortune in China. So can Amgen and the rest of them.