Firm says that increased antibody library revenues and cost cuts will outweight loss of manufacturing earnings.
BioInvent confirmed the decision to stop its contract manufacturing operations and focus manufacturing resources on its proprietary products. The firm says that the move will involve the loss of about 14 of its 104 full-time staff and reduce its annual fixed costs by about SEK 15 million (roughly $2 million) a year from 2011. An investment of some SEK 5 million (about $0.7 million) will be made in new equipment.
BioInvent CEO, Svein Mathisen, says that the reorganization represents a natural step in a process the firm has been going through over recent years. “Revenue from contract manufacturing has been an important contribution to our development,” he notes. “However, as proprietary projects have advanced in the value chain, their contribution has by far overshadowed the contract manufacturing revenue.
“We have demonstrated that we can generate significant value in our porprietary proejcts and are confident that an even stronger focus on our drug portfolio will create additional value for the company.”
BioInvent anticipates the loss in contract manufacturing revenues will be more than compensated for by the associated cost reductions, combined with increased revenues from partners using its n-CoDeR antibody library.