ImClone Acquits Itself with Construction of $260 Million Biopharma Manufacturing Plant in New Jersey

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Despite initial rejections from the FDA and an insider-trading scandal, in the end, solid science proved ImClone Systems Incorporated's (Nasdaq: IMCL) (New York, New York) cancer drug Erbitux was a worthy risk. In February 2004, ImClone and partner Bristol-Myers Squibb Company (NYSE: BMY) finally received FDA approval for the drug's use as a treatment for colorectal cancer. Obviously confident in that outcome, ImClone began construction over a year ago on a $250 million plant at their site in Branchburg, New Jersey (Plant 1042276) to manufacture Erbitux and other products.

As reported by Industrialinfo.com in August of 1999 (PEC 07001462), ImClone initially built a $53 million commercial-scale biopharmaceutical manufacturing facility in Branchburg that was completed in July of 2001. At the time of construction of that 100,000 square foot plant, Erbitux was known as C-225 and was in Phase III of clinical development.

Construction of the new plant began almost unnoticed amidst headlines focusing on the trials and tribulations of Sam Waskal, the founder of ImClone and Martha Stewart's legal troubles. The new facility will have a manufacturing capacity of up to 110,000 liters.

Currently, ImClone has a three-year contract-manufacturing agreement for Erbitux production with Lonza Biologics Incorporated (Portsmouth, New Hampshire). To accommodate large contract-manufacturing agreements such as this, Lonza has their own extensive $200 million biopharmaceutical capacity expansion plan at their Portsmouth site, as reported by Industrialinfo.com. (PEC 38000138, 38000172, 38000200)

ImClone expects to add anywhere from 300 to 400 additional employees upon completion of construction, which is expected in late 2005. The company is currently seeking expanded FDA Erbitux approvals for treatment of additional types of cancers.

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