- China | 24 July 2018
Can you briefly introduce CMAB and highlight the opportunity in the China market that led to the company’s creation?
CMAB is a Contract Development and Manufacturing Organization (CDMO) that was established in China to fulfill a specific need in the market. The creation of CMAB was driven by the desire of our investors to develop a new drug, but they couldn’t find a CDMO that met their requirements. To launch the company, several companies invested a total of $38 million in our Series A financing. In April 2018, our series B round raised another $34 million to accelerate our growth and expand our capacity. We have experienced rapid growth and aim to conduct an IPO by 2021. We take pride in being the fastest-growing CDMO company in both China and the world. Since our registration in June 2017 until March 2018, we have grown to employ 108 people, many of whom have up to 30 years of experience in the biologics industry. We have already secured three contracts, and this year we anticipate signing additional contracts valued at over 150 million RMB in total.
What are the key considerations for building a successful CDMO right now in China?
The most crucial factor for building a successful CDMO is assembling a strong team. Many failures in this sector can be attributed to the inability to form a highly capable and cohesive group of individuals. Each team member must excel in their specific field, whether it be cellular development, GMP manufacturing, IND submission, or other critical areas. At CMAB, we invested nearly a year and significant resources to attract the most qualified and experienced leaders in the industry.
CMAB aims to offer the largest CDMO facilities worldwide by 2021. What factors contributed to your decision to set up in Suzhou?
Initially, Shanghai was our preferred choice. However, it was challenging to find a central location that met our requirements, and the high cost of living made it less attractive for recruiting top talent. Suzhou emerged as the ideal solution due to its ability to strike a balance. Not only does it offer affordable living costs, but it is also a highly developed scientific and technological district with a cluster of talented professionals. Additionally, the local government in Suzhou has shown greater willingness to provide support, such as preferential policies for land usage and office facilities rentals. This support aligns with CMAB’s vision and the government’s focus on enhancing biological manufacturing capabilities in China.
What is your current client profile, and where would you like to see CMAB expand?
In our initial stage, we are primarily focused on supporting small to medium-sized local companies that possess a drug DNA sequence but lack their own facilities. We offer comprehensive services that cover the entire development process, from R&D to clinical phases 1, 2, and 3. While three companies, one from the US, have already signed contracts with us, our next strategic move is to further expand into the US and European markets. Our long-term goal is to work with big pharma companies within three to four years. To facilitate international collaborations, our management team includes members based in various locations worldwide. Offering “China for China” solutions is particularly beneficial for international clients who seek to leverage the opportunities in the Chinese market.
How do you see AI playing a role in enhancing the quality of service that a CDMO can offer?
We strongly believe that AI can provide a significant advantage, especially in the early stages of drug development. It can help us achieve high-quality standards in Good Manufacturing Practice (GMP) procedures for all our clients. At CMAB, we have invested over 20 million RMB in software to ensure data integrity, a level of investment that surpasses any other CDMO in China. Unfortunately, awareness of the criticality of this issue is still lacking in the industry. One of CMAB’s fundamental goals is to contribute to the improvement of IP protection for Chinese companies. While China’s reputation in this regard may not be favorable, we are dedicated to changing that perception.
Can you share the vision you have for CMAB going forward?
Our vision for CMAB is to become one of the top two leading CDMO companies in China within the next two years. We plan to achieve this by working closely with large pharmaceutical companies and expanding our scope to attract more international business. CMAB is committed to providing the most advanced technologies and highest quality services while strongly safeguarding our clients’ intellectual property interests. As a pure CDMO, we do not offer our own products, as our investors have emphasized the importance of avoiding any conflicts of interest.