Protein Production Start-Ups

The problems associated with producing proteins using current fermentation methods are well documented: Unlike chemicals, protein drugs are expensive to make. They are often used therapeutically in large doses, further putting a premium on manufacturing efficiency. Capital investment in facilities runs into several hundred million dollars—historically (at least until recently) deterring many large pharma companies from pursuing protein drug development programs. And now that proteins--antibodies in particular--are proving to be some of the most important new drugs, the increasing numbers of approved biopharmaceuticals have created shortages in protein manufacturing capacity, which is controlled largely by less than a dozen firms. Space at a commercial contractor has to be reserved years in advance, with the contractors locking in their profits up front.

Biogen Inc. and Idec Pharmaceuticals Corp. merged (forming the merger-of-equals, Biogen Idec Inc. ) partly to combine their protein production capabilities and avoid additional heavy capital investment in the...