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Thermo Fisher (TMO) to Meet Plasmid DNA Demand With New Facility
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Thermo Fisher Scientific Inc. (TMO - Free Report) recently announced the opening of a new current good manufacturing practice (cGMP) plasmid DNA manufacturing facility in Carlsbad, CA. The new facility will enable the company to meet growing demand for plasmid DNA-based therapies and vital mRNA-based vaccines.
Plasmid DNA is often used as a therapeutic agent in gene therapies and the development of certain vaccines. The reason for the rising demand of plasmid DNA is its several advantages, including weak immunogenicity and ease of manufacturing.
This latest development in expected to boost Thermo Fisher’s cell and gene therapy business. With this, Thermo Fisher will continue to expand its footprint in Carlsbad, and the investment will add to the community's economic development by improving health and medicine globally.
More on New Facility
The 67,000-square-foot facility is part of the company’s investment strategy to ensure that customers consistently meet increasing global demand for cell and gene therapies and vaccines.
Per Thermo Fisher’s management, demand for commercial plasmid DNA has grown considerably and is outpacing supply due to the accelerating development of transformative gene therapies and vaccines worldwide.
In addition to capabilities to produce large-scale plasmid DNA as a primary drug substance for DNA therapies, the new facility will expand clinical and commercial capabilities for cGMP plasmid DNA used as an important raw material to develop and manufacture cell and gene-based therapies.
Significance of New Investment
This expansion of the new facility in Carlsbad is expected to bring in new jobs and revenues and also enhance San Diego County's reputation as a hub for innovation. The new facility will improve medical services manufacturing capabilities in San Diego and California, thus strengthening the regions' leadership in scientific innovation.
Image Source: Zacks Investment Research
The expansion in Carlsbad also benefits the increasing life sciences ecosystem in California. As manufacturing scales up, Thermo Fisher expects to add more than 150 jobs.
Per management, investments in advanced manufacturing such as this will ensure that customers have reliable access to high-quality materials and capabilities that have become crucial for the production of the new life-saving medicines.
Industry Prospects
Per a report by Grand View Research, the global viral vectors and plasmid DNA manufacturing market size was $2.2 billion in 2020 and is expected to reach $8.6 billion by 2028, at a CAGR of 18.8%. The robust pipeline for gene therapies and viral-vector-based vaccines is primarily driving the market.
Amid the COVID-19 pandemic, the demand for viral vectors has rapidly increased, especially in vaccinology. Per the report, the application of these vectors in vaccine development has witnessed significant growth in 2020.
Considering the market opportunities, Thermo Fisher’s efforts to meet the growing demand for plasmid DNA is well-thought-out.
Recent Developments
In May 2021, Thermo Fisher and the University of California, San Francisco (UCSF) entered into a strategic alliance to accelerate the development and manufacturing of cell-based therapies. Per the agreement, Thermo Fisher will build and operate a 44,000-square-foot, advanced cell therapy development, manufacturing and collaboration center in leased space on UCSF's Mission Bay campus, which includes biomedical research facilities and hospitals.
In January 2021, Thermo Fisher acquired Henogen S.A. -- the viral vector manufacturing business of life sciences service and technology supplier, Groupe Novasep SAS. Thermo Fisher stated that the combination will benefit its global customers seeking support and capacity in the region as well as European customers bringing new medicines to patients inside and outside of Europe.
Price Performance
Shares of the company have gained 30.1% in a year’s time compared with the industry’s growth of 13.9%.
Zacks Rank and Key Picks
Currently, the company carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Thermo Fisher (TMO) to Meet Plasmid DNA Demand With New Facility
Thermo Fisher Scientific Inc. (TMO - Free Report) recently announced the opening of a new current good manufacturing practice (cGMP) plasmid DNA manufacturing facility in Carlsbad, CA. The new facility will enable the company to meet growing demand for plasmid DNA-based therapies and vital mRNA-based vaccines.
Plasmid DNA is often used as a therapeutic agent in gene therapies and the development of certain vaccines. The reason for the rising demand of plasmid DNA is its several advantages, including weak immunogenicity and ease of manufacturing.
This latest development in expected to boost Thermo Fisher’s cell and gene therapy business. With this, Thermo Fisher will continue to expand its footprint in Carlsbad, and the investment will add to the community's economic development by improving health and medicine globally.
More on New Facility
The 67,000-square-foot facility is part of the company’s investment strategy to ensure that customers consistently meet increasing global demand for cell and gene therapies and vaccines.
Per Thermo Fisher’s management, demand for commercial plasmid DNA has grown considerably and is outpacing supply due to the accelerating development of transformative gene therapies and vaccines worldwide.
In addition to capabilities to produce large-scale plasmid DNA as a primary drug substance for DNA therapies, the new facility will expand clinical and commercial capabilities for cGMP plasmid DNA used as an important raw material to develop and manufacture cell and gene-based therapies.
Significance of New Investment
This expansion of the new facility in Carlsbad is expected to bring in new jobs and revenues and also enhance San Diego County's reputation as a hub for innovation. The new facility will improve medical services manufacturing capabilities in San Diego and California, thus strengthening the regions' leadership in scientific innovation.
The expansion in Carlsbad also benefits the increasing life sciences ecosystem in California. As manufacturing scales up, Thermo Fisher expects to add more than 150 jobs.
Per management, investments in advanced manufacturing such as this will ensure that customers have reliable access to high-quality materials and capabilities that have become crucial for the production of the new life-saving medicines.
Industry Prospects
Per a report by Grand View Research, the global viral vectors and plasmid DNA manufacturing market size was $2.2 billion in 2020 and is expected to reach $8.6 billion by 2028, at a CAGR of 18.8%. The robust pipeline for gene therapies and viral-vector-based vaccines is primarily driving the market.
Amid the COVID-19 pandemic, the demand for viral vectors has rapidly increased, especially in vaccinology. Per the report, the application of these vectors in vaccine development has witnessed significant growth in 2020.
Considering the market opportunities, Thermo Fisher’s efforts to meet the growing demand for plasmid DNA is well-thought-out.
Recent Developments
In May 2021, Thermo Fisher and the University of California, San Francisco (UCSF) entered into a strategic alliance to accelerate the development and manufacturing of cell-based therapies. Per the agreement, Thermo Fisher will build and operate a 44,000-square-foot, advanced cell therapy development, manufacturing and collaboration center in leased space on UCSF's Mission Bay campus, which includes biomedical research facilities and hospitals.
In January 2021, Thermo Fisher acquired Henogen S.A. -- the viral vector manufacturing business of life sciences service and technology supplier, Groupe Novasep SAS. Thermo Fisher stated that the combination will benefit its global customers seeking support and capacity in the region as well as European customers bringing new medicines to patients inside and outside of Europe.
Price Performance
Shares of the company have gained 30.1% in a year’s time compared with the industry’s growth of 13.9%.
Zacks Rank and Key Picks
Currently, the company carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks from the broader medical space are Envista Holdings Corporation (NVST - Free Report) , BellRing Brands, Inc. (BRBR - Free Report) and STERIS plc (STE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
BellRing Brands has an estimated long-term earnings growth rate of 22%.
STERIS has a projected long-term earnings growth rate of 12%.