Daiichi Sankyo Unveils $1.9 Billion Global Manufacturing Expansion for Enhertu

Daiichi Sankyo has announced plans to invest approximately 300 billion yen ($1.9 billion) in expanding its manufacturing capabilities for the antibody-drug conjugate (ADC) Enhertu across multiple countries. The move comes as the company aims to solidify its position in the ADC market and mitigate potential geopolitical risks.

Global Investment Strategy

The Japanese pharmaceutical giant is set to establish new production facilities and expand existing ones in four key regions:

• Japan: A 77 billion yen ($491.7 million) investment at the Hiratsuka plant in Kanagawa Prefecture
• Germany: 140 billion yen ($894 million) allocated for production sites in Munich, to be completed by the end of 2028
• China: 24 billion yen ($153 million) for a new facility in Shanghai, scheduled for completion by 2030
• United States: 56 billion yen ($357.8 million) for additional facilities at the existing plant in New Albany, Ohio, with expansion set to conclude by October 2027

These strategic investments are designed to enhance Daiichi Sankyo's global manufacturing network and ensure a stable supply of Enhertu, which has shown significant promise in treating various forms of cancer, particularly HER2-positive breast cancer.

Market Position and Growth

Daiichi Sankyo's expansion plans reflect the company's confidence in Enhertu's market potential. The drug, developed in partnership with AstraZeneca, generated $3.75 billion in combined sales in 2024. Industry analysts predict that Daiichi Sankyo will maintain its dominance in the ADC space through 2029, largely due to Enhertu's breakthrough impact in treating HER2-low breast cancer.

The recent FDA approval of Enhertu as a first-line treatment for unresectable or metastatic HER2-positive breast cancer, when combined with Roche's Perjeta, further strengthens its market position. This latest indication adds to the drug's growing list of approved uses since its initial approval in 2019.

Strategic Considerations

Daiichi Sankyo's CEO, Hiroyuki Okuzawa, highlighted that while some of these investments were planned before the emergence of potential pharmaceutical tariffs, the company is taking a proactive approach to address possible geopolitical risks. The diversification of manufacturing locations across multiple continents allows Daiichi Sankyo to maintain production flexibility and mitigate supply chain disruptions.

The company's commitment to expanding its ADC capabilities aligns with its long-term strategy to strengthen its foothold in this rapidly growing segment of the pharmaceutical industry. As Daiichi Sankyo continues to invest in its global manufacturing network, it is positioning itself to meet the increasing demand for Enhertu and potential future ADC therapies.