Pharmaceutical manufacturing companyIDT Australia (ASX: IDT)has been awarded a grant by the Victoria state government to partly fund the establishment of Australia’s first current good manufacturing practice antibody-drug-conjugate (ADC) manufacturing facility.
The grant, provided by the Victorian Industry Investment Fund stream of the Victorian Jobs and Investment Fund, will support IDT Australia’s new $3.8 million commercial contract design and manufacturing organisation facility in Boronia.
The US National Institutes of Health describes ADCs as an emerging class of pharmacological compounds that combine the potency of anti-cancer drugs (often called payloads) with the specificity of monoclonal antibodies to target the tumor site, thus integrating chemotherapy and immunotherapy.Major growth sector
The global ADC market is forecasted to reach $211 billion over the next 15 years as it is expected to displace between 30% to 50% of the traditional chemotherapy market.
IDT chief executive officer Paul McDonald said the new ADC facility is a strategically important asset for Australia and the company.
“It will position Victoria at the forefront of Australia’s sovereign capability to manufacture the latest cutting-edge drugs, while providing a significant growth catalyst for our fledgling advanced therapies business,” he said.
“Our efforts to build on IDT Australia’s unique world-class facilities and expertise will cement our market leadership position as the ‘go-to’ partner for pharmaceutical and biotech groups in Australia and internationally.”
Relationships in place
IDT has already established relationships with ADC biotech companies, including a master services agreement with renowned Japanese pharmaceutical supplier Nagase & Co to develop and manufacture linkers (the chemical component that connects the cytotoxic drug to the antibody), payloads and bioconjugation services for global pharmaceutical companies.
The funding of the government’s commitments will occur over a 12-month period in three tranches.
IDT Australia will fund the balance of the project from internal resources and debt facilities financing.
Strong momentum
The new grant comes shortly after IDT recorded a 48% increase in its third-quarter operating revenue, while its year-to-date sales have already exceeded the total for FY23 by 27%.
The company recorded continued strong growth across all three business pillars, lifting total 3QFY24 unaudited revenue to $3.2m.
The period also saw the company being awarded a key contract by Sanofi Australia with an initial value of $3m to $3.5m
(20min delay)