AGC to Expand Its Spanish Synthetic Pharmaceutical Production Base for Capacity Increase and Establishment of New R&D Facility

TOKYO,April 10,2020 -- AGC Inc. (AGC),a world-leading manufacturer of glass,chemicals and high-tech materials,has announced its decision to expand facilities at its synthetic pharmaceutical (*1) CDMO (*2) business subsidiary,AGC Pharma Chemicals Europe S. L. U.,headquartered in Spain.

This initiative will not only upgrade existing production facilities to achieve production capacity 1.3 times the current level,but also establish a brand-new R&D facility. The new R&D facility is scheduled to begin operation in March 2021,while the facility expansion is scheduled for completion in May 2022.

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Image1: AGC Pharma Chemicals Europe exterior

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Image2: Exterior of new research building

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AGC Pharma Chemicals Europe,a synthetic pharmaceutical CDMO,was acquired from Boehringer Ingelheim in March 2019 in order to establish synthetic pharmaceutical production capability in Europe for the supply of active pharmaceutical ingredients and their intermediates. In October of the same year,the name was changed from Malgrat Pharma Chemicals to its current AGC Pharma Chemicals Europe. The company has a long history and wealth of experience in the manufacture of pharmaceutical ingredients compliant with GMP (*3),and is capable of handling a wide range of production from development drugs to commercial drugs.

The synthetic pharmaceutical CDMO market is growing over 7% annually,while the number of contracts handled by the company is growing at an even faster rate. To satisfy this accelerating demand,existing production facilities will be upgraded to increase pharmaceutical production capacity to 1.3 times the current level. A new micronization facility will also be introduced to meet increasing demand for micronization of active pharmaceutical ingredients. In addition,a brand-new R&D facility will be built which will enable the development of processes from the lab scale to commercial production,and to deliver better and faster services to customers.

Under its "AGC plus" management policy,the AGC Group has made a commitment to position life science-related business,including the pharmaceutical CDMO business,as one of its strategic initiatives,aiming at sales in the 100 billion yen range by 2025. In addition to mergers and acquisitions,AGC is actively investing in facilities in Japan,the U.S. and Europe. AGC will continue to provide customers in each region with globally consistent,top-level quality and service in the life science sector,which is expected to exhibit significant growth in the coming years. By maximizing synergies among operation sites,AGC will enhance its technology and continue to pursue its goal of being a company that contributes to pharmaceutical companies,medical patients,and society.

Notes:

(*1) Synthetic pharmaceutical: Pharmaceuticals manufactured through chemicalsynthesis

(*2) CDMO: Contract Development & Manufacturing Organization,a company which iscontracted or acts on behalf of another company to handle productmanufacturing as well as the development of manufacturing methods.

(*3) GMP: Good Manufacturing Practice,a standard for the manufactureand quality management of pharmaceuticals and quasi-pharmaceuticalproducts.

REFERENCE

- Overview of AGC Pharma Chemicals Europe

Company name: AGC Pharma Chemicals Europe S.L.U.

Established: 2018

Address: Catalonia,Spain

Shareholder & ratio: AGC,100%

Image3: AGC Group offices engaged in life science operations

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