- Company begins construction of state-of-the-art vaccine manufacturing and research and development facilities in Suzhou to support growth
- Operations to focus on development and manufacturing of vaccines for pigs, cattle and fish and companion animals tailored to the animal health needs of China
Zoetis
Inc. (NYSE: ZTS) today celebrated the start of construction on a
combined global manufacturing and supply and research and development
center in Suzhou, China, with a traditional groundbreaking ceremony. The
new facility will focus on development and production of quality
vaccines for swine, cattle, fish and companion animals that help protect
against the strains of diseases prevalent in China. Zoetis also marked
the opening of an interim research and development facility nearby in
Suzhou where the company’s PHARMAQ business will begin to develop
vaccines for the farmed fish industry in China; the first such R&D
center established by a multinational company to concentrate on
aquaculture in mainland China. The events affirmed the company’s
continued investment in and commitment to innovation, manufacturing
excellence and growth in China.
“We at Zoetis have a deep understanding of the animal health challenges
that livestock farmers and veterinary professionals in China face every
day,” said Mike Wang, Senior Vice President, Greater China Cluster for
Zoetis. “With this new center for vaccine innovation co-located with
expanded manufacturing capabilities in Suzhou, and a team of highly
trained field representatives, we are well-positioned to help China’s
livestock farmers answer increasing demand for a safe and abundant
supply of pork, milk, beef and fish. And we can support veterinarians as
they strive to help pets live longer, healthier lives.”
Zoetis is a leading multi-national animal health company in China with
revenue of $174 million (USD) in China in 2017. Zoetis began operations
in China in 1995 and has approximately 600 employees and commercial
headquarters in Shanghai. The product portfolio includes more than 80
product lines that span five product categories, including vaccines,
parasiticides, anti-infectives, medicated feed additives and other
pharmaceutical products, which serve six core animal species - pigs,
dairy cattle, poultry, fish, dogs and cats. China is the fifth largest
market for Zoetis by annual revenue worldwide.
Expanding Innovation in China and for China
The planned vaccine research and development (R&D) center in Suzhou will
expand and strengthen the innovation underway at the Zoetis R&D
laboratory in Beijing, which opened in 2015.
“The future work of our scientists in Suzhou will help accelerate the
development of quality vaccines tailored to meet the animal health needs
of the China market, and it will enable expansion from our initial focus
on vaccines for swine to those for cattle and fish as well as for
companion animals,” said Dr. Catherine Knupp, Executive Vice President
and President of Research and Development at Zoetis. “Zoetis scientists
from our laboratory in Beijing and our global R&D network will
collaborate with the Suzhou-based R&D team, helping speed the
introduction of Zoetis technologies and processes into the development
of high-quality vaccines and medicines for China.” The animal vaccines
market in China was valued at more than $1.8 billion1 in 2017.
At the start-up R&D laboratory in Suzhou, PHARMAQ scientists will
primarily concentrate on acquiring in-depth knowledge of the disease
threats within the Chinese aquaculture sector. This know-how will serve
as the foundation to develop safe and effective vaccines for the
aquaculture industry in China. Vaccines are expected to become an
important health management tool for China’s aquaculture industry to
help control the diseases that pose the greatest threat to this
industry. China is the world`s largest aquaculture nation, producing
approximately 50 million metric tonnes2 of farmed fish in
2016, which represent 63 percent2 of global production.
Increased reliance on vaccines to control disease could help reduce use
of antibiotics to treat bacterial disease in farmed fish. Once Zoetis
completes construction on the new combined R&D and manufacturing
facility, R&D operations will transition to the new facility.
Increasing Manufacturing Capacity and Capabilities in China
“We at Zoetis view China as a global center for high-quality
manufacturing as well as innovation,” said Roman Trawicki, Executive
Vice President and President of Global Manufacturing and Supply at
Zoetis, who officiated at the groundbreaking ceremony. “The completion
of this new vaccine manufacturing facility in Suzhou will establish a
center of excellence for production of quality vaccines tailored
specifically to the needs of the Chinese market. It will broaden our
manufacturing capacity and capabilities in China.”
The new innovation and manufacturing facility in Suzhou will include
43,000 square meters of vaccine manufacturing operations and laboratory
space. Zoetis expects to complete construction and Good Manufacturing
Practices certification by the Chinese Ministry of Agriculture by 2021.
The site will feature state-of-the-art technologies for the manufacture
of viral and bacterial vaccines, and will include pilot scale
manufacturing for the development of new vaccine products. Zoetis
expects to add approximately 100 new R&D and manufacturing positions at
the facility during the next two years.
The new facility will become the company’s second vaccine manufacturing
site in China. In 2017, Zoetis became the sole owner of its former joint
venture vaccine manufacturing site in Jilin where the company has
produced vaccines for swine tailored to the needs of the Chinese market
since 2011. Innovative products developed there include Rui Lan AnTM,
a specialized vaccine launched in 2013 to help control highly pathogenic
porcine reproductive and respiratory syndrome (PRRS) identified in
China. In 2016, Zoetis also launched Rui Lan Wen™, the first combination
vaccine approved in China to help protect pigs against classical swine
fever (CSF) and porcine reproductive and respiratory syndrome (PRRS)
prevalent there.
The new facility will also become the company’s second global
manufacturing and supply facility in Suzhou. Zoetis opened a
state-of-the-art facility there in 2015 where it produces medicated feed
additive products as well as water soluble and pre-mix products used to
help raise healthy pigs, cattle, and poultry. Products include
Linco-Spectin®, Lincomix®, Tilmicosin®
and COT (Check-O-Tox®).
About the Animal Health Market in China
China is the world’s second largest animal health market valued at
approximately $4.3 billion1 USD in 2017 with an expected
compound annual growth rate between seven and ten percent3.
Vaccines continue to be the most significant growth driver. China leads
the world in pork production and is home to the world’s largest swine
herd with farmers raising 700 million pigs annually1. Pet
ownership and spending on healthcare is increasing in China. Spending on
medicines and vaccines for pets was approximately $300 million1
in 2017. The animal health industry is devoted to supporting farmers in
their work to deliver a safe, wholesome food supply from healthy farm
animals and to help pets live longer, healthier lives.
About Zoetis
Zoetis is the leading animal health company, dedicated to supporting its
customers and their businesses. Building on more than 60 years of
experience in animal health, Zoetis discovers, develops, manufactures
and markets veterinary vaccines and medicines, complemented by
diagnostic products, genetic tests, biodevices and a range of services.
Zoetis serves veterinarians, livestock producers and people who raise
and care for farm and companion animals with sales of its products in
more than 100 countries. In 2017, the company generated annual revenue
of $5.3 billion with approximately 9,000 employees. For more
information, visit www.zoetis.com
1 Vetnosis 2017 STORM Report
2 OECD-FAO
Agricultural Outlook 2017-2026 database; https://read.oecd-ilibrary.org/agriculture-and-food/oecd-fao-agricultural-outlook-2017-2026/fish-and-seafood_agr_outlook-2017-12-en#;
accessed 04-03-18
3 Zoetis internal estimates
Media
Zoetis Inc.
Yu Fang, +86 21 22610265 (O)
fang.yu@zoetis.com
or
Elinore White, 973-443-2835 (O)
elinore.y.white@zoetis.com