(Yicai) Feb. 8 -- Huadong Medicine plans to invest CNY2 billion (USD278 million) to build a biopharmaceutical industrial production base to improve the Chinese company’s mass production capabilities of innovative biological drugs in the research and development stage.

Huadong’s unit Hangzhou Zhongmei Huadong Pharmaceutical will be responsible for the investment and construction of the production base in Hangzhou, which will also serve as the main logistics distribution center for Zhongmei Huadong, the Hangzhou-based parent company announced late yesterday.

The first phase of the projects, which will include the construction of production lines for antibody-drug conjugates, antibodies, and polypeptides, as well as other supporting R&D, production, and employee service facilities, will cost nearly CNY1.2 billion and be completed by June 2026, Huadong noted.

The remaining CNY812 million (USD114.1 million) will be used based on the progress of the company’s new product R&D and market conditions, Huadong added.

The new production base can help Huadong meet its needs for clinical trial preparation during the new drug development process and industrial production after the new drug launch, as well as provide services for the company’s domestic and overseas partners in the development of biopharmaceuticals, Huadong pointed out.

Huadong’s shares [SHE: 000963] were trading down 0.1 percent at CNY31.60 (USD4.44) as of 1.55 p.m. in Shanghai today.

Editor: Futura Costaglione