Agilent Technologies of the U.S. has announced its plan to expand its capacity to manufacture oligonucleotides to redouble output.
The announcement dragged down the stock prices of its Korean competitor ST Pharm in a day. Concerns are mounting among Korean investors over the fiercer competition to receive orders for oligonucleotide supply, pulling down ST Pharm’s share prices. The company is Dong-A Socio Group’s affiliate specializing in manufacturing active pharmaceutical ingredients (APIs).
On Monday (local time), Agilent announced that it would invest $725 million into redoubling its oligonucleotide manufacturing capacity. The U.S. company explained that the move is to meet the rapid growth market and increasing demand for high-quality APIs.
Agilent plans to add new manufacturing facilities – Trains C and D – in the Agilent Frederic Plant in Colorado. The company added Trains B to the plant in 2020, which will begin operation toward the end of this year.
Agilent thinks the completion of the newly planned manufacturing facility will be able to meet increasing demands for siRNA, an antisense oligonucleotide (ASO), and CRISPR gRNA. The company expects to begin its supply from the newly added plant in 2026.
“One of our strategic priorities is to help our existing and new clients develop oligonucleotide-based treatments, commercialize them globally, and accelerate their growth,” said Sam Raha, head of Agilent’s diagnosis and genetic unit. “Expanding production facility will make us meet strong demands for siRNA and ASO. It also will sharply increase the number of CRISPR gRNA programs we can handle.”
Agilent Technologies President and CEO Mike McMullen said, “The investment reflects strong demands for treatment-purpose oligonucleotide and those for Agilent’s high-quality contract development and manufacturing organization (CDMO) service in the oligonucleotide sector. It is another example focusing on implementing our mission to invest in a high-growth market and improve quality of life.”
However, the news on Agilent’s facility expansion plan sharply pulled down the share prices of its Korean competitor, ST Pharm. The company’s flagship business is manufacturing and supplying oligonucleotides for RNA treatment.
On Tuesday, ST Pharm’s share price fell 78,900 won, down 7.18 percent from 85,100 won the previous day.
In November 2021, ST Pharm also announced its facility expansion plan. The company will invest 150 billion won by the end of 2025 to build its second oligonucleotide plant to add four to six manufacturing lines.
However, as considerable time is left before the completion of ST Pharm’s second plant, the accelerating expansion by its U.S. competitor will likely lead to fierce competition to receive orders.
The oligonucleotide is a molecule that makes up nucleic acids, such as DNA and RNA. It is a raw material for drugs targeting cancer, cardiovascular disease, and rare and infectious diseases.
According to Agilent, the oligonucleotide market is estimated at $1 billion. It will grow by a double-digit rate for the next five years to reach $2.4 billion in 2027.