In a statement that sees Japan’s Fujifilm Holdings Corp stepping up its pivot towards healthcare, the Japanese giant said, it will spend $928 million to double its capacity at a drug manufacturing facility in Denmark, which it has pledged to use for producing COVID-19 treatments.
Fujifilm Holdings Corp’s investment in Fujifilm Diosynth Biotechnologies will expand production lines for bulk drug substances and cultivate cells for producing viral vaccines, said Fujifilm. It had bought the facility in Hillerod, Denmark, in August 2019 from Biogen Inc for around $890 million.
The investment marks Fujifilm’s presence as a global contract development and manufacturing organisation (CDMO), with Fujifilm supplying other companies in the pharmaceutical industry.
Fujifilm had begun diversifying from cameras and office equipment into healthcare more than a decade ago.
Previously, Fujifilm had announced that the Hillerod facility will offer future manufacturing capacity for COVID-19 therapies.
The development comes even as Fujifilm’s pharma unit is ramping up efforts to test its own anti-flu drug Avigan as a treatment for COVID-19.
By the end of fiscal year 2022, Fujifilm aims to achieve a sales target of $928.68 million (100 billion yen) in its bio-CDMO business.
With the news reaching the market, Fujifilm’s shares rose by 0.7% in Tokyo against a 0.2% gain in the broader market.