DSM Biologics delivers major boost to Montreal’s life sciences cluster strategy

Key infrastructure investment

Montreal is set to benefit from the largest biotechnology investment in Canadian history with an imminent decision by DSM Biologics to green light a $450-million expansion to its bio-manufacturing facility. The deal, involving all levels of government, is a major coup for Montreal’s nascent biotechnology cluster and is certain to provide a major boost to the city’s recently released strategic plan to accelerate development of its life sciences sector (see page 2).

The DSM facility is situated adjacent to the National Research Council’s Biotechnology Research Institute (BRI), which was a key driver in convincing the Dutch multinational to choose Montreal over a locale in North Carolina. Also contributing to the decision were SGF Sante, a division of Société générale de financement du Québec (SGF), Investissement Quebec (sic) and Technology Partnerships Canada. SGF holds a minority stake in DSM Biologics, stemming from an investment in its predecessor, BioIntermediair.

The plant will be expanded from its current 20,000-sq-m to 45,000-sq-m and focus on the production of monoclonal antibodies and recombinant proteins based on mammalian cultures. Plans are also in the works for a further expansion and DSM is seeking additional land in the immediate vicinity. DSM purchased the facility two years ago and plans to make it a centerpiece in its objective of becoming a global leader in bio-manufacturing. DSM intends to significantly ramp up the amount of R&D it conducts at the facility, with plans to develop proprietary cell lines, vectors and processes.

DSM is spending nearly $12 million on basic engineering work for the new modular facility and site preparation has already begun on land which is being leased from the BRI with a long-term option to purchase. Terms of the multi-partner agreement have yet to be finalized, but BRI DG Dr Michel Desrochers says the deal is “95% complete”.

“For Canada this is amazing because we will go from practically nothing to being one of the cornerstones of bio-manufacturing in the world. This is probably going to be the largest investment in biotechnology ever seen in Canada for a long time,” says Desrochers. “This is very very important. There will be job creation, technology transfer, knowledge development and also company spin-offs. Since DSM is moving to a larger scale, we will need some smaller scale operations for pre-clinical and things like that. I expect this will also attract other investments.”

COLLABORATION TO INCREASE

The level of collaboration between DSM and BRI is expected to escalate. DSM currently occupies about 500-sq-m within BRI’s complex and that space is likely to triple. The Institute will also contribute its efforts to satisfy DSM’s growing need for skilled personnel.

“The DSM expansion will create another 300 or 400 positions and right now they have 100 positions that are unfilled. Canada doesn’t have that capacity right now so we’ve had extensive discussions with DSM about re-launching our training program,” says Desrochers. “We will have to produce these people very quickly but once we start doing that it becomes even more interesting. We will be able to provide personnel for others as well and become a centre for both training expertise and manufacturing.”

The prospect of DSM’s new investments has also prompted BRI to implement a restructuring of its three main research programs. Its bioprocessing group group has been named the bioprocessing platform and has been expanded with addition of its vectors and gene processing units from the health group. BRI also plans to create a new downstream processing group, providing a suite of services relating to bio-manufacturing.

“With that I will cover all the angles — scale-up, vectors, mammalian culture and downstream processing. Then I’ll be able to tackle the demand of DSM,” says Desrochers.

BRI has just completed the eighth edition of its popular Crossroads conference, which drew more than 450 delegates in a first-time entry fee designed to to limit attendance to a manageable level. BRI now houses more than 800 workers (including a base of 340 NRC employees), making it the largest of the NRC’s 19 institutes.

Desrochers says the success of BRI’s three main research areas — health, environment and bioprocessing — as well as the explosion in genomics and proteomics has created severe budgetary, space and skills pressures.

“I’m convinced that this is the future. This is where Canada can really make it,” he says. “We should keep investing because it’s going to pay off. There’s no question.”

Last year, in addition to its base funding, BRI received nearly $7 million from research contracts and $4.1 million from the Genome Health Initiative.

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