
Updated: Agilent throws down $725M to double manufacturing capacity for nucleic acids to meet API demand
A life science CDMO is investing hundreds of millions of dollars into manufacturing nucleic acids amid increasing demand for active pharmaceutical ingredients, or API.
Agilent Technologies, which spun out of American tech giant Hewlett Packard back in 1999, put the word out on Monday, saying that the $725 million will be used to double the company’s current manufacturing capacity for therapeutic nucleic acids. These nucleic acids, also known as therapeutic oligonucleotides, are DNA or RNA molecules that act as the API for certain drugs that target indications such as cancer or rare diseases.
Agilent said that the expansion will specifically meet the growing demand for siRNA, antisense and CRISPR guide RNA molecules.
CEO Mike McMullen said in a statement that the investment is a reflection of “strong demand” for therapeutic oligonucleotides. The company added that the market for therapeutic oligos is estimated to be a billion-dollar market, and close to double that by 2027.
In order for the company to double its capacity, Agilent is expanding its manufacturing facility in the town of Frederick, Colorado, which opened back in 2019. An Agilent spokesperson told Endpoints News via email that the expansion will add 198,000 square feet to the facility and double the facility’s dedicated manufacturing space.
It will be adding two new manufacturing lines to its facility, which currently has one manufacturing line operational, and another line — which Agilent invested $150 million into in 2020 — is planned to become operational later this year. The company said that it is planning on breaking ground on the expansion later this month, and it plans on starting customer shipments from the expansion by the end of 2026.
A spokesperson added that the expansion will also generate 160 new jobs in the state. A press release from Colorado Governor Jared Polis’ office on Monday said that the state’s Economic Development Commission approved up to $1,787,500 in a performance-based incentive over a 5-year period, at $6,500 per net new job. That incentive is contingent upon Agilent meeting new job creation and salary requirements, as well as local match incentives.
Both the town of Frederick and the county the facility is located in, Weld County, contributed to a local incentive package that will be at least $9.3 million over a ten-year time frame.
Editor’s note: This story has been updated to include comment from Agilent and additional information on the incentive package.