By August or September of this year, Fujifilm Diosynth's CEO expects “basically half” of the company’s $8 billion in manufacturing investments to be “in operation,” calling 2025 the “biggest year” yet for the CDMO's expansion progress.
While Fujifilm Diosynth Biotechnologies isn’t immune to the challenges facing the broader CDMO industry, the company’s long-running expansion journey—and its ability to snare high-profile pharma clients—has blunted many of the pressures met by its peers.Following major progress updates across its manufacturing network late last year, Fujifilm Diosynth’s focus in 2025 will be to get its “first large investments up and running” and to execute a previously disclosed plan to double the size of its biomanufacturing plant in Hillerød, Denmark, Lars Petersen, the CDMO’s president and CEO, said in a recent interview.Since 2011, Fujifilm Diosynth has laid out more than $8 billion in a bid to bulk up its global biomanufacturing network, the company noted in a November press release. That cash has been used to fuel the buildout of multiple modular facilities, with the CDMO placing particular emphasis on the Denmark site and a growing biologics campus in Holly Springs, North Carolina.By August or September of this year, Petersen said he expects “basically half” of the company’s $8 billion in manufacturing investments to be “in operation,” calling 2025 the “biggest year” yet for Fujifilm Diosynth’s expansion progress.The CEO was quick to point out that his company has “several more projects in the making,” as well. Fujifilm Diosynth in early November said that the first phase of its expansion at the Hillerød plant was ready to roll, thanks to the addition of six new mammalian cell bioreactors, for a total of 12 now operating at the site.The next phase of the growth strategy, backed by an investment of $1.6 billion, will bring another eight bioreactors and two downstream processing streams online, the company said last year.Fujifilm expects to kick off fill-finish work at the site by the middle of this year, with plans for the full expansion to be in operation by 2026. All told, the move will grow the site’s footprint to 51,500 square meters (about 554,341 square feet) and create up to 2,200 jobs.As for the Holly Springs facility, where Fujifilm Diosynth laid out an additional $1.2 billion last April, construction is poised to wrap up shortly before summer, Petersen said. The entire facility is slated to open in the fall, he added.In total, the company plans to go from six bioreactors in Holly Springs as of last October to 20 in about a year’s time, essentially tripling its capacity at the site, per Petersen. Fujifilm Diosynth is standing tall among several other CDMOs like Samsung Biologics and Lonza that have managed to buck the downturn the industry suffered following the contracting highs of the COVID-19 pandemic. Petersen acknowledged that slump, attributing it to several years of inflation and interest rate increases, coupled with skittishness on the part of small biotech investors.And while the company’s large-scale business performed “very well” in 2024, the CEO said, “We do, like the rest of the industry, have our struggles in more of the cell therapy area.”In fact, last April, Fujifilm Diosynth said it was restructuring a recently unveiled small-scale business unit after suffering the effects of “short-term impacts of reduced venture capital investment into early-stage research projects.” At the time, the company noted that the issue was particularly pronounced among cell and gene therapy investments.Fujifilm Diosynth is sticking with its cell therapy business, “but it’s, of course, something we need to watch out for,” Petersen said.“I still think, like many others, that this is the future,” the CEO said of the personalized medicine boom, though he added as a caveat that the field currently faces many challenges around issues like cost.Overall, Fujifilm Diosynth has been “more fortunate” than many of its peers amid the industry’s slump, Petersen said, given that it was already undergoing a multiyear journey to increase its large-scale business and capture more big pharma clients.While small biotechs may be struggling, the larger pharma contracting business is in good shape, the CEO added.“My take is that a lot of the large pharma companies, they didn’t want to invest themselves, so they prefer to outsource more,” Petersen said.