Japanese pharmaceutical giant Daiichi Sankyo has significantly expanded its global research and manufacturing footprint with the establishment of a new research institute in San Diego and a major $154 million antibody-drug conjugate (ADC) manufacturing facility in Shanghai, positioning the company to accelerate next-generation cancer therapy development and delivery.
Strategic Research Expansion in San Diego
The Daiichi Sankyo Research Institute in San Diego represents the company's third international research facility, following the opening of institutes in Boston and Munich in 2024. This expansion marks a pivotal step in the pharmaceutical company's global research strategy to leverage local scientific expertise and innovation ecosystems.
"Establishing a dedicated scientific presence in San Diego marks a significant milestone for Daiichi Sankyo as we continue to deepen our long-standing relationships in one of the world's leading innovation hubs and expand our global research strategy," said Yuki Abe, PhD, Head of R&D Division in Japan and Head of Research at Daiichi Sankyo.
The research institutes are designed to foster the development of next-generation medicines by embedding Daiichi Sankyo scientists within local life-science ecosystems, enabling the identification of unique and cutting-edge science that can serve as building blocks for new medicine discovery.
Groundbreaking ADC Manufacturing in Shanghai
In a parallel strategic move, Daiichi Sankyo China broke ground on Monday for a new facility in Shanghai's Zhangjiang Science City, Pudong New Area, with an investment of approximately 1.1 billion yuan ($154 million). The facility will focus on producing antibody-drug conjugates, an emerging class of highly potent pharmaceutical therapies primarily used for cancer treatment.
This facility represents a significant milestone as one of China's first national pilot programs for cross-border segmented production of biological products. The innovative approach allows multinational companies to distribute biopharmaceutical production processes across different domestic and international sites, with Daiichi Sankyo focusing on high value-added production stages in Pudong.
Addressing Cancer Treatment Needs
The Shanghai facility directly addresses growing medical needs in cancer care. With an aging population and lifestyle changes, the overall incidence of cancer is rising, creating persistent unmet medical needs. ADC technology offers a solution through its precise targeted delivery mechanism, effectively addressing limitations of traditional treatments.
"Our global ADC platform supports a robust pipeline across multiple oncology indications, including several clinical-stage candidates," said Hiroto Kashiwase, executive officer and head of the global technology unit of Daiichi Sankyo. "This facility will be a key driver not just for production, but for faster patient access through added capacity and supply stability."
The facility will help deliver breakthrough ADC therapies to Chinese patients more efficiently, addressing growing and diverse treatment needs while localizing ADC manufacturing and expanding the supply of innovative therapies.
Strategic Market Integration
Daiichi Sankyo's expansion reflects China's recent measures to attract biopharmaceutical investment, including deepening institutional opening-up, fostering innovative approaches to advanced biopharmaceutical production, and enhancing reimbursement systems for innovative drugs. These initiatives encourage multinational R&D and manufacturing in China, aligning with the company's strategic vision.
Having operated in the Chinese market since the 1980s, Daiichi Sankyo brings more than 120 years of pharmaceutical experience to its expanded operations. The new ADC facility will integrate R&D, manufacturing, supply, and sales capabilities, further embedding the company in the Chinese market.
Xu Lai, deputy government head of Pudong New Area, emphasized the region's biopharmaceutical strengths: "Pudong has become one of the regions in China with the most complete industry chain, the best ecosystem, the highest concentration of talent, the most efficient research and development, and the most active innovation in the biopharmaceutical field."
The dual expansion strategy demonstrates Daiichi Sankyo's commitment to connecting global technology with local demand while serving as a best practice that supports China's further opening of its biopharmaceutical sector to the global market.
