Genzyme sets up $100m R&D center in Beijing

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By Zheng Lifei (China Daily)
Updated: 2009-09-18 08:40

Genzyme Corp, the world's third biggest biotechnology firm by revenue, yesterday started the construction of a $100 million research and development (R&D) center in Beijing, cashing in on the growing needs for healthcare and tapping into the talent pool in the country.

The US biotechnology company is also looking at local acquisition opportunities and planning to introduce more products to drive its growth in the world's most populous country, senior company officials said in Beijing yesterday.

The Cambridge-based pharmaceutical and biotech firm said the Beijing R&D center, its second such facility outside the US, would allow the company to strengthen its global research capacity through partnerships with local academic, governmental, and industrial organizations.

"The investment further confirms our commitment to China and will contribute to the development of the biotechnology industry and innovation in China," said Henri Termeer, CEO, Genzyme.

The 200,000 square feet (18,580 sq m) complex, scheduled to be completed in 2011, will carry out research in biology, pharmacology, chemistry and the discovery and development of novel biologics and other gene therapies.

Genzyme, which has a presence in areas such as oncology, kidney disease, osteoarthritis and metabolic diseases, will also use the Beijing R&D facility to develop drugs and therapies specifically for disease treatment for patients in China and Asia Pacific that are unique to the region, according to Richard Gregory, senior vice-president of Genzyme and its research head.

Genzyme, which is one of the world's biggest and most respected biotech companies, will consider "slightly increasing" its manufacturing in China after the establishment of the R&D facility.

"It's a logical follow-on, but we will set up the manufacturing in new technology areas like gene therapy," said Sanford D. Smith, president of Genzyme International Group.

"Its natural for us to manufacture locally the products that may come out of the new Beijing lab," Smith said.

Genzyme, which has made nearly 30 acquisitions for $6 billion in the process over the past 16 years, is also considering making acquisitions in China, Smith said.

And the company "has had some discussions already with some local companies", Smith said, without going into specifics.

The US company, which is famous for its offerings to cure rare diseases, hopes to introduce about 20 products covering five categories in the next 10 years in China, up from three drugs it currently sells in the country, according to Michael J. Glynn, senior vice president and general manager of Genzyme's Japan-Asia Pacific operations.

"We hope that by then we will also see the first product innovated in China coming out," Glynn said.

"The Beijing laboratory is a strong indication of our confidence in China becoming an innovation center," Glynn said.

The Beijing center, which will house 350 researchers, will be built according to US Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system, the highest standard for energy-efficiency.

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