AstraZeneca invests $2.5 billion in strategic R&D center in China

AstraZeneca is investing $2.5 billion as part of its plans to establish a sixth global strategic R&D centre in Beijing, China.

Along with research and manufacturing agreements that will further advance life sciences in China, AstraZeneca said that the investment over the next five years is part of a strategic partnership with the Beijing Municipal Government and the Beijing Economic-Technological Development Area Administrative Office. The investment includes agreements with three biotech companies - Harbour BioMed, Syneron Bio, and BioKangtai. AstraZeneca said it expects its Beijing workforce to grow to 1,700 employees.

Harbour BioMed, a biopharmaceutical company, will collaborate with AstraZeneca to discover and develop ‘next-generation multi-specific antibodies for immunology and oncology.' The collaboration includes an option to licence multiple programmes, using Harbour BioMed’s proprietary 'Harbour Mice' fully human antibody technology platform along with a $105 million equity investment by AstraZeneca in the company. 

The initial phase of the Harbour BioMed strategic collaboration will focus on ongoing research programs, with the potential for more. In return, Harbour BioMed will receive an upfront payment, near-term milestone payments, and option exercise fees for additional programs, totalling $175 million. There will also be up to $4.4 billion in additional development and commercial milestone payments, along with tiered royalties on future net sales. Additionally, the parties have the option to include further programs into the collaboration over the next five years. There is also an option to extend the terms of the agreement for an additional five years.

The partnership with Syneron Bio, an oral macrocyclic peptide drug biotech company, will see the companies develop ‘potential first-in-class’ macrocyclic peptides for the treatment of chronic diseases including autoimmune and metabolic diseases. Under the collaboration, AstraZeneca will gain access to Syneron Bio’s high-throughput macrocyclic peptide drug research and development platform. AstraZeneca will also provide ‘upfront payments and potential near-term milestone payments totalling $75 million and up to $3.4 billion in additional development and commercial milestones.’

A new joint venture with BioKangtai, will see the partners develop, manufacture, and commercialise innovative vaccines for respiratory and other infectious diseases for patients in China and around the world. This will be AstraZeneca’s first and only vaccine manufacturing facility in China and will be located in the Beijing BioPark.

AstraZeneca is also partnering with the Beijing Cancer Hospital in translational research, data science, and clinical development.

AstraZeneca chief executive Pascal Soriot said: “This $2.5 billion investment reflects our belief in the world-class life sciences ecosystem in Beijing, the extensive opportunities that exist for collaboration and access to talent, and our continued commitment to China. Our sixth strategic R&D centre will partner with the cutting-edge biology and AI science in Beijing and be a critical part of our global efforts to bring innovative medicines to patients worldwide.”

The new R&D Centre in Beijing adds to an existing site located in Shanghai; the company has four other R&D centres - two in Europe and two in the US. At the start of this year AstraZeneca announced a $570 million investment in Canada, creating 700 jobs across the business. 

Further reading on life sciences and innovation:

• AstraZeneca CEO Sir Pascal Soriot awarded President's Medal at Palace of Westminster