Fujifilm Biotechnologies opened its massive Holly Springs manufacturing facility this week, betting that large pharmaceutical companies will sustain demand even as the broader biotech sector grapples with a prolonged funding crisis.
The Japanese company’s $3.2 billion North Carolina plant represents one of the largest biomanufacturing investments in the state’s history, yet the timing coincides with significant challenges facing contract development and manufacturing organizations.
Industry estimates suggest 15-25% of mammalian bioreactor capacity remains idle across multiple facilities in North America and Europe, as early-stage biotechs operate with dwindling cash reserves, leading to widespread pipeline de-prioritization and suspended manufacturing campaigns.
The Holly Springs facility initially houses eight 20,000-liter bioreactors and employs over 680 workers, with plans to double capacity by 2028. Johnson & Johnson and Regeneron signed as anchor customers, providing Fujifilm with the large pharmaceutical partnerships that have become essential as smaller biotech clients struggle.
Fujifilm CEO Lars Petersen acknowledged that while small biotechs face difficulties, “the larger pharma contracting business is in good shape”, as major companies increasingly prefer outsourcing over internal manufacturing investments.
The facility opening adds to North Carolina’s aggressive pursuit of life sciences companies. The state has attracted approximately $28 billion in life sciences investments since 2016, with nearby competitors including Amgen’s $1 billion plant and Genentech’s planned $700 million facility.
However, the expansion occurs as the contract manufacturing sector faces consolidation pressures. The winners in this environment are likely to be lean, flexible providers with strong technical track records and the ability to serve late-stage and commercial products, according to industry executives.
Fujifilm’s modular construction approach, which the company claims reduced design time by 70%, represents an attempt to build manufacturing capacity more efficiently than traditional methods. Yet with substantial overcapacity already plaguing the industry, the facility’s success will largely depend on whether large pharmaceutical companies continue expanding their outsourcing strategies.
