Fujifilm Enters Vaccine Contract Manufacturing Business

Fujifilm announced that it has invested in a large stake of the Texas-based contract manufacturing organization (CMO) Kalon in order to expand its pharmaceutical business into the biopharma sector.

Founded in 2011 by Texas A&M University, Kalon specializes in the manufacture of biopharmaceutical vaccines that fight deadly pathogens, including pandemic influenza, potential bioterrorism, and the recently publicized, Ebola.

Kalon is a major subcontractor for one of three Centers for Innovation in Advanced Development and Manufacturing, which are funded through government subsidies at both the state and national level. Kalon’s facilities are capable of scaling production for both clinical and market needs.

Under the terms of the deal, Fujifilm acquires 49 percent of total membership interests in Kalon and will further be entitled to appoint members to Kalon’s board. If certain goals are met, Fujifilm retains the option of increasing its interest share to 100 percent. No financial details were disclosed.

Fujifilm rallied admirably from the shift the film world took towards digital photography, and in recent years, has invested heavily in several pharmaceutical interests. In 2010, Fujifilm established its pharmaceutical sector and launched into clinical development following a partnership with Mitsubishi.

The company entered the biopharma CMO business in 2011 when it acquired Merck BioManufacturing Network and established Fujifilm Diosynth Biotechnologies. Since then, Fujifilm has continued to scale up investment in CMO’s, including Toyama Chemical.

Toyama Chemical, now a subsidiary of Fujifilm, made news this month when it introduced its anti-influenza drug favipiravir (Avigan) as a potential treatment for the Ebola virus. According to Reuters, both France and Guinea are interested in running clinical tests with this relatively new treatment.

Approved last March for the treatment for influenza, Fujifilm hopes that the drug, which has shown positive results in mice and in experimental treatments in individual Ebola cases, will prove effective against the disease.

An advantage of Avigan, it is administered in a tablet form which is easier to transport, distribute, and manufacture. Fujifilm told the Wall Street Journal that it was capable of manufacturing up to 300,000 new courses of Avigan, and this most recent acquisition of Kalon should only bolster the company’s manufacturing capabilities.