Week of April 17, 2000
  Blockbuster Deal of the Week
   from Site Selection's exclusive New Plant database

New $100 Million California Plant Part
of Baxter's $400 Million Global Biotech Push

Expansion, you might say, is in the blood of the Hyland Immuno Division of Baxter Healthcare - to the tune of US$400 million, in fact.

The latest expansive move for Baxter's Hyland Immuno unit -- which develops and produces therapeutic proteins to treat hemophilia, immune deficiencies and other blood-related disorders - is unfolding in Thousand Oaks, Calif. Baxter is planning a second and third manufacturing suite at the Thousand Oaks site. Together, the two expansions entail a capital investment of $100 million.

At the same time, Baxter's Hyland Immuno unit is rapidly expanding in Switzerland and Austria, reflecting the inherent growth imperative in the burgeoning biotechnology business. All told, Hyland Immuno's worldwide expansions that are either planned, under way or recently completed total a whopping $400 million in capital investment.

"This investment reflects the tremendous opportunity we see for growth in the biosciences area," said Harry M. Jansen Kraemer Jr., chairman and chief executive officer of Deerfield, Ill.-based Baxter International (www.baxter.com).

Added Thomas Glanzmann, president of Baxter's Glendale, Calif.-based Hyland Immuno business, "The significant investment in Hyland Immuno facilities positions us to maximize our broad biopharmaceutical technology platforms, and is a clear commitment to manufacturing excellence and continued regulatory compliance. "We will be able to better leverage our manufacturing capabilities and continue to deliver innovative products to patients around the world," Glanzmann added.

Thousand Oaks Employment to Reach 500

As with the first operation built on the site, the new Thousand Oaks facility will manufacture Baxter's recombinant Factor VIII therapy, Recombinate Antihemophilic Factor, a genetically modified clotting factor used as a therapy for people with hemophilia.

The two new Thousand Oaks manufacturing facilities will add 150 employees by 2001, bringing Baxter's total employee base at that site to approximately 500.

Baxter has already submitted its application to the U.S. Food and Drug Administration for licensing the first of the two new Thousand Oaks facilities. A similar licensing request for the first facility will be submitted to the European Union by April 30. Baxter expects to submit similar applications for licensing its third Thousand Oaks manufacturing suite in June, according to company officials. Baxter hopes to receive approvals for both suites by the end of 2000, they said.

Another $100 Million Baxter Plant
Already Under Construction in LA

Baxter's two newly announced expansions will add to the growing biotech cluster in the Los Angeles metro.

The company, though, was already a significant player in that growing cluster. In fact, it has another new facility under way within the city of Los Angeles. Baxter recently began construction of a new $100 million, 40,000-sq.-ft., (3,600-sq.-m.) state-of-the-art plasma processing facility that is located adjacent to its existing Hyland Immuno facility in Los Angeles.

The new site, which is expected to become operational in 2003, will improve production efficiency, company officials said. The investment will increase Baxter's employment total at the Los Angeles site by the end of 2000 from 750 to 800.

Austrian, Swiss Operations Also Expanding

Here's a look at other major projects in Hyland Immuno's global expansion juggernaut:

  • Orth, Austria: Construction of a new biotechnological research and production facility was recently completed, and regulatory authorities have approved the facility. The $33 million complex houses the production of TicoVac, Hyland Immuno's next generation vaccine against tick-borne encephalitis, which was licensed in Europe in 1999. Hyland Immuno is pursuing approval for TicoVac with the U.S. Army. Company officials expect the vaccine to receive licensing in Central and Eastern Europe later this year.

  • Vienna, Austria: Upgrades also under way at Baxter's facilities in Vienna, including a new, state-of-the-art "sterile filling facility" that will be used for plasma and recombinant products such as Tisseel fibrin sealant, Endobulin S/D immune globulin, Anti-thrombin III, and protein-free recombinant FVIII. Capital investment at the Vienna site will be approximately $50 million, and the new building will be completed by 2002. Baxter is also evaluating further expansions of its operations in Vienna, company officials say.

  • Neuchatel, Switzerland: Construction is under way for a new multi-product biosciences facility that will produce, along with other products, a protein-free Factor VIII therapy for hemophilia. Over the next three years, the $131 million facility will increase total employment at the Neuchatel location from 78 to 400. The addition of the new Swiss facility to Hyland Immuno's portfolio will yield a significant reduction in time to market for next-generation therapies, company officials said.

©2000 Conway Data, Inc. All rights reserved. Data is from many sources and is not warranted to be accurate or current.