Read about Adragos’ plans and growth predictions in Kawagoe City, Japan. Adragos aims to make significant investments in the Japanese pharmaceutical contract manufacturing industry, as reported by Nikkei. Find the complete article below!
Adragos significantly invests in Japanese Kawagoe’s Plant
Adragos Pharma, a CDMO headquartered in Munich, Germany, plans to invest significantly in the Japanese pharmaceutical contract manufacturing industry. By 2028, the company will invest 2.5 billion JPY in the Kawagoe plant in Saitama, Japan, to produce approximately 3 billion tablets annually.
Established in 2020, Adragos Pharma has built a robust network that spans across France, Germany, Greece, Japan, and Norway. In March 2023, the company acquired the Kawagoe plant from the French pharmaceutical company Sanofi. The plant’s capacity is one of the largest among CDMOs in Japan, specializing in small molecules. This entry of foreign-owned CDMOs into Japan’s pharmaceutical industry is expected to boost the industry significantly.
Previously, under Sanofi’s ownership, the Kawagoe plant manufactured oral drug dosages from bulk to packaging and injectable products. However, since 2020, its focus has shifted to visual inspection and packaging of oral drug dosages and injectables, with no bulk production of solid dosage during the period of 2020-2023.
Adragos will restart tablet bulk production by reactivating the granulation, tableting, and coating under the required air conditioning. The company will introduce new facilities to increase its production capacity, aiming to produce approximately 3 billion tablets annually by 2028. According to the company, this will be one of the largest tablet production sites in Japan.
The decision to invest stems from the growing demand for outsourcing pharmaceutical production. With the rise of “biopharmaceuticals” utilizing cells and genes, the complexity of new drug development has increased. It has become challenging for pharmaceutical companies to handle all aspects, from research and development to manufacturing, leading to a greater need for outsourcing. In Japan, profitability has been impacted by annual drug price reductions, further driving the demand for outsourcing opportunities.
Adragos highlights “the inquiries for the use of CDMOs to manufacture necessary generic drugs have increased, particularly due to the current shortage of such drugs.”
According to Global Information, the Japanese Contract Development and Manufacturing Organization (CDMO) market is projected to undergo an average annual growth rate of 5.9% from 2023 to 2030, with an anticipated valuation of $19.5 billion (approximately 2.8 trillion yen) by 2030. This would position it as the second-largest pharmaceutical market, following the U.S. market, which reached $30.6 billion as of 2021 (as reported by Grand View Research, Inc.).
CEO Andreas Raabe emphasizes, “The CDMO market in Japan is underdeveloped compared to overseas markets, and there is much room for growth.” The company intends to expand its business in Japan and is considering acquiring factories and other facilities.