Date: 2016-03-10
Type of information: Construction of a production plant
Compound: biotechnology plant to develop and manufacture biosimilar products
Company: Gedeon Richter (Hungary)
Therapeutic area: Technology - Services
Type agreement: construction of a production plant
Action mechanism:
Disease:
Details: * On March 10, 2016, Gedeon Richter announced that the company will spend HUF 15 billion (€ 4.85 milion) on an investment project to expand its biotechnology plant founded in 2012 to develop and manufacture biosimilar products, which has a unique, cutting edge technology in the region. The planned investment will help the Company create another 125 jobs for highly qualified experts. The plant in Debrecen will be manufacturing products with high intellectual added value that make it possible to provide the most advanced treatment while at the same time ensuring significant savings for the national health insurance fund. These products represent a significant value for both the patients and the national economy and also contribute to further expanding Richter's export potential. The segment that ensures the most effective therapy for the treatment of oncological and immunological diseases and exhibits the fastest growth in the world's pharmaceutical markets is the use of biosimilar medicines produced by biotechnological methods. Biosimilar products can ensure the same efficiency in treatment as the original biotechnology products with the advantage of being more cost-effective and thereby reducing the costs of health insurers. As a company with long-term thinking, Gedeon Richter Plc attaches great importance in its business strategy to the development and manufacture of biosimilar products in Hungary. Consequently, the Company established a biotechnology development laboratory in Budapest back in 2005. It then spent HUF 25 billion to build a new biotechnology plant in Debrecen in 2012 that is unique in Central Eastern Europe. The plant has created over 200 jobs for highly qualified experts. Richter's first self-developed biosimilar products are already under European registration and will probably be on the market in the course of 2017 depending on the result of the licensing procedure. In line with its biotechnology strategy, the Company made sure in the planning phase that it would be able to expand the biotechnology plant in Debrecen in the long-term by building a workshop, which has not been installed with any equipment yet, and making the free space next to the present building available for future use. Hungary's Minister of Foreign Affairs and Trade Péter Szijjártó and Gedeon Richter's CEO Erik Bogsch will sign an agreement on providing subsidy for Richter's biotechnology plant in Debrecen on the basis of a special Governmental decision. The amount of the state contribution is close to HUF 5 billion. This enables Richter to launch an investment programme that can double its current biotechnology manufacturing capacity, create an analytical capacity that can be used for quality rating the products produced in the plant as well as resolve the special storage tasks for the entire country. Another development is that 125 new jobs can be created, especially for people with higher education degrees. Richter will be working together with the town of Debrecen and the University of Debrecen to train the specially qualified staff. The total cost of the investment programme is expected to be nearly HUF 15 billion.
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