Bayer sheds some sites in €2B push to expand next-gen manufacturing capabilities

German pharma giant Bayer plans to spend 2 billion euros ($2.2 billion) over the next three years to upgrade its manufacturing and supply chain capabilities as it dives deeper into cell and gene therapies. As part of the effort, the company is selling certain sites to outside partners.

The moves are part of the company’s push to retool its pharmaceutical business to focus on breakthrough biotech innovations that can deliver long-term growth. Earlier this month, the company said it planned to invest heavily in artificial intelligence, data science and multichannel marketing as well.

A signicant portion of the money will focus on strengthening Bayer's cell and gene therapy production as well as expanding its production facility in Berkeley, California, where it is currently building a $200 million cell therapy facility.

“As an important element of our overall pharmaceutical business strategy we will focus our manufacturing activities on supporting future key areas of growth in which we aim to change the treatment paradigm for patients,” Holger Weintritt, Bayer Pharmaceuticals' head of pharmaceuticals product supply, said in a statement.

Meanwhile, about 1 billion euros ($1.1 billion) will go toward reinforcing the company’s manufacturing locations in Germany. Its Berlin supply center will focus on parenterals, and the Leverkusen supply center will specialize in non-hormonal solids. The Bergkamen facility will focus on contrast media and hormone products while expanding capacities for therapeutics.

Bayer plans further investments at the Wuppertal site that focuses on launch production and new production technologies.

The company has been building its cell and gene therapy capabilities since its 2020 acquisition of Asklepios BioPharmaceutical for up to $4 billion. Last year, Bayer spent 131 million euros ($145 million) on plants and equipment for cell and gene therapy research and production facilities in the U.S., Spain, Germany, the U.K. and Canada, according to its annual report.

As part of its efforts to focus more on biotechnology, the company is transferring its São Paulo Cancioneiro facility in Brazil to a new operator. Additionally, Bayer said it will transfer parts of the infrastructure and services at its German sites in Bergkamen, Wuppertal and Berlin to external partners. To that end, Bayer said it has already sold its production plant in Karachi, Pakistan.

Details of those deals weren’t disclosed.