Chinese drugmaker CSPC and AstraZeneca to jointly build next-gen biologics manufacturing plant

Chinese drugmaker CSPC Pharmaceutical Group said on Wednesday that it had signed a contract with AstraZeneca to establish a joint venture to build a next-generation biologics manufacturing plant in Shijiazhuang, Hebei province.

The venture will initially manufacture and supply biological drug substances agreed by the two companies for global markets, CSPC said in a statement. Drug substance is the active pharmaceutical ingredient produced before a medicine is formulated and packaged as a finished product.

CSPC will own a 51 percent stake in the venture, while AstraZeneca will hold the remaining 49 percent. The companies will jointly oversee construction and day-to-day operations, drawing on CSPC’s AI-enabled good manufacturing practice systems and plant-building experience, as well as AstraZeneca’s global quality and supply-chain expertise.

Financial terms, planned capacity, a construction timetable and the products to be made at the facility were not disclosed. The agreement is subject to customary closing conditions, including regulatory approvals.

The contract formalizes plans announced in March, when the companies signed a memorandum of understanding to establish the venture. It also broadens their relationship beyond drug discovery and licensing into manufacturing and global supply.

CSPC said the venture could add more products as capacity and commercial demand grow. The company said the project would strengthen its ability to handle international manufacturing and supply requirements and extend its overseas expansion from exporting drugs and technology to providing production and supply-chain capabilities.

The agreement comes as AstraZeneca expands both research and manufacturing footprints in China, its second-largest global market. The United Kingdom-based drugmaker said in January that it planned to invest $15 billion in China through 2030, spanning drug discovery, clinical development and manufacturing.

It has since announced plans for a cell-therapy manufacturing base in Shanghai and a radioconjugate drug supply facility in Guangzhou, Guangdong province, in addition to the new Shijiazhuang venture.