Roche Invests $282 Million in New Shanghai Biomanufacturing Hub for Vabysmo Production

Swiss pharmaceutical giant Roche has announced a significant investment of 2.04 billion Chinese yuan ($282 million) to establish a new biomanufacturing facility in Shanghai, China. The plant, set to be Roche's second for branded medicines in the country, will primarily focus on the domestic production of the eye medication Vabysmo, known locally as Luoshijia.

Strategic Expansion in China

The new facility, spanning 25,000 square meters (approximately 269,000 square feet), will be located in Shanghai's Zhangjiang High-tech Park. Construction is expected to be completed by 2029, with production slated to begin in 2031. This move underscores Roche's commitment to the Chinese market and its strategy to maintain a strong manufacturing presence in major global markets.

Bian Xin, president of Roche Pharmaceuticals China, emphasized the significance of this development, stating, "The deployment of a new production base is an important milestone in Roche's development in China." She added that the investment represents a "major breakthrough in the localized production of more innovative drugs in this important market."

Sustainable Manufacturing and Global Investment Strategy

Roche has committed to a sustainable approach in both the construction and operation of the new plant. The facility will utilize 100% green electricity once operational, aligning with the company's environmental goals. This investment is part of Roche's broader strategy to strengthen its global manufacturing capabilities while navigating potential pharmaceutical tariffs.

The Shanghai project complements Roche's recent announcement of a $50 billion investment in its U.S. operations over the next five years. This includes plans for a 900,000-square-foot manufacturing plant for next-generation weight loss drugs, as well as new facilities for continuous glucose monitoring devices and gene therapy production.

Vabysmo's Growing Importance

Vabysmo, the primary focus of the new Shanghai facility, has shown significant commercial success since its approval three years ago. In 2024, the ophthalmology injectable surpassed $4 billion in global sales, becoming Roche's third-highest earning drug across its entire portfolio. The medication is approved for various retinal conditions and has established itself as a key product in Roche's ophthalmology lineup.

This substantial investment in Vabysmo production capacity reflects Roche's confidence in the drug's continued growth potential, particularly in the Chinese market. As the company expands its manufacturing capabilities, it aims to meet increasing demand while solidifying its position in the competitive pharmaceutical landscape.