GERMANY – Bayer, the German pharmaceutical giant, plans to invest 2 billion euros (US$2.2 billion) over the next three years to improve its manufacturing and supply chain capabilities as it expands into cell and gene therapies.

As part of the initiative, the company is selling specific sites to third-party partners.

The changes are part of the company’s effort to retool its pharmaceutical business so that it can focus on breakthrough biotech innovations that can deliver long-term growth.

Earlier in March, the company announced that it would be investing heavily in artificial intelligence, data science, and multichannel marketing.

A significant portion of the funds will be used to improve Bayer’s cell and gene therapy production, as well as to expand its production facility in Berkeley, California, where it is currently constructing a US$200 million cell therapy facility.

Meanwhile, approximately 1 billion euros (US$1.1 billion) will be invested in strengthening the company’s manufacturing facilities in Germany.

Its Berlin supply center will specialize in parenterals, while its Leverkusen supply center will focus on non-hormonal solids.

The Bergkamen facility will concentrate on contrast media and hormone products while expanding therapeutic capacity.

Bayer intends to make additional investments at the Wuppertal site, with a focus on launch production and new production technologies.

Since its US$4 billion acquisition of Asklepios BioPharmaceutical in 2020, the company has been expanding its cell and gene therapy capabilities.

According to its annual report, Bayer spent 131 million euros (US$145 million) last year on plants and equipment for cell and gene therapy research and production facilities in the United States, Spain, Germany, the United Kingdom, and Canada.

The company is transferring its So Paulo Cancioneiro facility in Brazil to a new operator as part of its efforts to focus more on biotechnology.

Bayer also stated that it will transfer parts of its infrastructure and services at its German sites in Bergkamen, Wuppertal, and Berlin to third-party partners.

To that end, Bayer announced that it has already sold its manufacturing plant in Karachi, Pakistan. The specifics of those transactions were not disclosed.

Bayer’s investment outside pharma

Outside of pharma, Bayer will also invest 120 million euros over the next four years in its German consumer health sites in Bitterfeld, Darmstadt and Grenzach, the company said.

The focus will be on digitization, smart factory technologies and employee training.

In addition, the crop science division will receive approximately 385 million euros (US$418.3 million) in investment in digital methods and novel technologies, as well as an additional 300 million euros (US$ 325.9 million) in property, plant, and equipment.

Digital transformation is a critical component of the Bayer group’s investment round across Germany. In order to accomplish this, Bayer plans to open a Digital Innovation Center in Germany in 2022.

Its initial focus will be on “the development and widespread application of advanced AI technologies, as well as the advancement of robot-supported process automation.”

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