GlaxoSmithKline will be relying on Lonza for clinical supplies of early stage drugs in a relationship that has longer term implications. The contract manufacturer says it will produce five of GSK's monoclonal antibody candidates and will help the drug giant plan for the construction of its own biopharma plant in Britain.
The drug candidates are currently in Phase I and Phase II testing, reports Reuters, which notes that the deal is a welcome sign for CMOs. Cost-focused drugmakers have cut back on their outsourcing, and their thinning of inventories amounts to a double blow to the contractors.
GSK announced plans late last year to build a biotech facility and expand an existing plant in the U.K. The announcement followed a British government promise to cut corporation taxes for patent-derived income.
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