TOKYO (Reuters) – Fujifilm Holdings Corp (4901.T) will spend $928 million to double capacity at a drug manufacturing facility in Denmark, which it has pledged to use in producing COVID-19 treatments, as the Japanese company steps up its pivot towards healthcare.

The investment in Fujifilm Diosynth Biotechnologies will expand production lines for bulk drug substances and cultivate cells for producing viral vaccines, Fujifilm announced on Tuesday. It bought the facility in Hillerod, Denmark, in August from Biogen Inc (BIIB.O) for about $890 million.

The investment expands Fujifilm’s presence as a global contract development and manufacturing organisation (CDMO), which supplies other companies in the pharma industry. Fujifilm started to diversify from cameras and office equipment and into healthcare more than a decade ago.

Fujifilm previously announced that the Denmark site would offer future manufacturing capacity to the COVID-19 Therapeutics Accelerator to speed-up the response to the global pandemic.

It is an initiative launched by the Bill & Melinda Gates Foundation and two other large charities, aimed at accelerating drug development and identifying a promising COVID-19 therapeutic candidate based on efficacy and safety data demonstrated in clinical trials.

Fujifilm’s pharma arm is testing its own anti-flu drug Avigan as a treatment for COVID-19.

The company aims to achieve 100 billion yen ($928.68 million) in sales in its bio-CDMO business by the fiscal year ending March 2022.

Fujifilm shares rose 0.7% in Tokyo versus a 0.2% gain in the broader market.

Reporting by Rocky Swift; Editing by Muralikumar Anantharaman

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Huawei says it remains ‘open to discussions’ with UK government

LONDON – Chinese technology firm Huawei said Sunday that it remains “open to discussions” with the British government and is working closely with its customers to find ways of managing the proposed US restrictions so Britain can maintain its current…

Airbnb secures new $1 billion loan on top of $1 billion bond deal

NEW YORK/BOSTON (Reuters) – Airbnb, whose home rental business is suffering as the coronavirus pandemic freezes global travel, has secured a new $1 billion loan just days after closing a $1 billion debt deal, the company said on Tuesday. Parties…

China releases list of top 50 VR firms

NANCHANG — A list of China’s top 50 virtual reality (VR) firms was unveiled at the 2020 World Conference on the VR Industry, which opened on Monday in Nanchang, East China’s Jiangxi province. Electro-acoustic components manufacturer Goertek, Beijing Baidu Netcom…

Experts warn of rising risks from emerging tech

With the advent of the digital era, cybersecurity professionals now have to deal with new threats and risks brought by 5G, big data, the internet of things and other emerging technologies. “Powered by new technologies such as the internet of…