Croda International PLC (LSE:CRDA) said the US government agreed to provide up to US$75mln to expand the company's US manufacturing capacity of ingredients for lipid systems used in novel therapeutic drugs, such as mRNA vaccines.
Croda itself will invest up to US$58mln in the project, bringing the total investment to US$133mln, the company said in a statement.
A new lipid facility will be set up as part of a new multi-purpose ‘current Good Manufacturing Practice' (cGMP) site in Lamar, Pennsylvania. Construction is expected to start later this year, with the new capacity anticipated in 2025. It will be Croda’s third manufacturing site for lipid systems, alongside existing facilities in Alabaster, Alabama, and Leek in the UK.
Lipid systems offer “significant potential” as the delivery system for a wide range of nucleic acid applications, including novel mRNA-based therapeutics, such as flu vaccines and cancer treatments, Croda noted. Given the scale of the current clinical development pipeline, the company expects the market for lipid systems “to grow significantly over the next 10 years”.
It said the Lamar facility will support US preparedness for future health emergencies, by providing enough capacity to produce the necessary components for vaccine manufacture.
"We are grateful to the US government for its support of Croda,” said Daniele Piergentili, president of Croda Life Sciences. “The delivery technology based on lipid systems offers significant potential for the safe and efficient delivery of next generation vaccines and therapeutic drugs.
“As a result of this investment, Croda will be able to expand its capabilities to develop and manufacture ingredients in support of this important technology. This will help ensure that the US is well prepared for future health emergencies and equipped to offer advanced treatments for some of the most prevalent illnesses in the world today."
Nicole Kilgore, deputy joint program executive officer for Chemical, Biological, Radiological and Nuclear (CBRN) defense, added: "The US government is pleased to be a part of these industrial base expansion efforts to expand production of raw materials for mRNA vaccines."