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Cytovance Biologics Inc.

This article was originally published in Start Up

Executive Summary

Cytovance intends to make the outsourcing of clinical-stage protein manufacturing easily accessible to small firms, so they don't have to invest their precious cash in this sort of infrastructure. The worldwide scarcity of biological manufacturing capacity is of growing concern to development-stage companies all too aware of the misfortune that Immunex Corp. suffered through inability to adequately meet market demand for its rheumatoid arthritis drug etanercept (Enbrel).

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The dark side of outsourcing is coming into view: worldwide capacity for biological manufacturing is currently maxed out. Firms with biological products still in clinical development could find their progress to market delayed, if they can't make enough protein for trials. Others unable to meet demand for approved products will have to reconcile themselves to lost sales. Demand will likely exceed capacity for several years to come--putting companies that do have manufacturing capacity in strong bargaining positions.

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