28th Jun 2022 09:08
(Alliance News) - Croda International PLC said on Tuesday it entered into an agreement with the US government to expand the company's ingredient manufacturing capacity for lipid systems used in novel therapeutic drugs, such as mRNA vaccines.
The speciality chemicals firm said the agreement will see the US government provide up to USD75 million to expand its capacity, while Croda itself will invest up to USD58 million, bringing the total project investment to up to USD133 million.
This spend is included within the company's existing capital expenditure programme, outlined in the 2021 annual results, it noted.
The award was by the US Biomedical Advanced Research & Development Authority, which sits within the US Department of Health & Human Services.
The investment will be used to set up a new lipid facility in Lamar, Pennsylvania. Construction is expected to start later this year, with new capacity anticipated in 2025.
Lipid systems offer potential as the delivery system for a wide range of nucleic acid applications, including novel mRNA-based therapeutics, such as flu vaccines and cancer treatments.
"This will help ensure that the US is well-prepared for future health emergencies and equipped to offer advanced treatments for some of the most prevalent illnesses in the world today," said Daniele Piergentili, president of Croda Life Sciences.
Shares in Croda were 0.1% higher at 6,386.00 pence on Tuesday morning in London.
By Heather Rydings; [email protected]
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