Daiichi Sankyo sets up new unit in Shanghai

With an investment of approximately 1.1 billion yuan ($154 million), Daiichi Sankyo China broke ground on a new facility to produce antibody-drug conjugates (ADC) — an emerging class of highly potent pharmaceutical therapies usually used for treating cancer — in Zhangjiang Science City located in Shanghai's Pudong New Area on Monday.

As one of China's first national pilot programs for cross-border segmented production of biological products, the facility will localize ADC manufacturing and expand the supply of innovative ADC therapies, underscoring the Japanese pharmaceutical company's long-term commitment to the China market.

Such pilots innovatively support multinational companies in breaking down and distributing the biopharmaceutical production process across different domestic and international sites. Daiichi Sankyo has adopted a cross-border segmented production model, focusing on high value-added production stages in Pudong.

The company said this approach not only connects global technology with local demand, but also serves as a best practice that supports China's further opening of its biopharma sector to the global market.

China has in recent years rolled out new measures to attract biopharma investment, including deepening institutional opening-up, fostering innovative approaches to advanced biopharmaceutical production, and enhancing reimbursement systems for innovative drugs — all of which encourage multinational R&D and manufacturing in China and align with Daiichi Sankyo's strategy for the new facility, the company said.

"Our global ADC platform supports a robust pipeline across multiple oncology indications, including several clinical-stage candidates," said Hiroto Kashiwase, executive officer and head of the global technology unit of Daiichi Sankyo.

"This facility will be a key driver not just for production, but for faster patient access through added capacity and supply stability. It will help us deliver breakthrough ADC therapies to Chinese patients more efficiently, addressing growing and diverse treatment needs," he said.

With an aging population and changes in lifestyle, the overall incidence of cancer is on the rise, and there remain persistent unmet medical needs. Experts said that ADC technology, through its precise targeted delivery mechanism, can effectively address the limitations of traditional treatments.

Having operated in the China market since the 1980s, Daiichi Sankyo, with a history of more than 120 years, has progressed from product launches to full-scale operations. The new ADC facility will add to such capabilities, further bringing R&D, manufacturing, supply and sales under one roof while embedding the company even more deeply in the Chinese market, the company said.

Xu Lai, deputy government head of Pudong New Area, said that Pudong has become one of the regions in China with the most complete industry chain, the best ecosystem, the highest concentration of talent, the most efficient research and development, and the most active innovation in the biopharmaceutical field.

"Currently, Pudong is committed to a dual-drive approach of technological and institutional innovation, emphasizing both R&D and manufacturing. Pudong aims to establish itself as the premier launch site for global innovative drugs and medical devices, a pioneer in institutional reform, and a preferred destination for scientists to innovate and start businesses," she said.

Data from the Pudong government show that foreign capital and companies have been a cornerstone for Pudong's economic development. Companies from 175 countries and regions have invested in over 40,000 projects in Pudong since the early 1980s.