sanofi is also positioning in emerging markets. In November 2009, the company signed a memorandum of understanding with Prominvest,
a fully owned subsidiary of the Russian State Corporation Rostekhnologii, confirming its intent to participate in the Pharmpolis
Project. The project is part of an overall effort by the Russian government to localize innovator-drug manufacturers in Russia
and foster the expansion of the country's pharmaceutical market. sanofi-aventis will use its insulin-manufacturing facility
in Russia as part of a pilot initiative in the Pharmpolis Project.
sanofi-aventis acquired the vaccine producer Shantha Biotechnics (Hyderabad, India) in 2009. It is also investing in prefilled
injection production lines for its insulin product Lantus SoloStar in China; in vaccine production in Shenzen, China; and
in an expansion and relocation to facilities in Hangzhou, China. The company also invested EUR 100 million ($129 million)
for an influenza vaccine manufacturing facility in Mexico.
In November 2009, Novartis (Basel) inaugurated the US's first-ever large-scale cell-culture and adjuvant vaccine-manufacturing
facility in Holly Spring, North Carolina. The nearly $1-billion investment is a result of a partnership between Novartis and
the US Deparment of Health to improve influenza vaccine-manufacturing in the US and facilitate domestic pandemic flu preparedenss.
The plant is scheduled to be running at full-scale commercial production in 2013. If licensed in an emergency, the plant will
be able to produce product in 2011.
In emerging markets, Novartis is investing $500 million in a new vaccine-manufacturing facility in Goiana, Brazil, which is
scheduled to be operational by the end of 2014. The company opened a new technical R&D and API manufacturing facility in Changshu,
China to support the production of Tekturan/Rasilez (aliskiren hemifumarate), which included a $56-million investment in 2009
as part of a $265-million investment in that facility. In November 2009, Novartis announced it is investing $1 billion during
the next five years to expand its research center in Shanghai, making it the company's third-largest research institute in
the world. The company also acquired an 85% stake in the Chinese vaccine company Zhejiang Tianyuan Bio-Pharmaceutical.
Bristol-Myers Squibb (BMS, New York) has substantially completed its new multiproduct bulk biologics manufacturing facility
in Devens, Massachusetts. Construction of the facility began in early 2007 and was substantially completed in 2009. The company
plans to submit the site for regulatory approval in 2011 and hopes to begin commercial production of biologic compounds later
in 2011. BMS also implemented in 2009 a productivity transformation initiative, which included reductions to its manufacturing
operations, which numbered 19 production facilities as of the end of 2009. BMS is on track to realize its target of achieving
$2.5 billion in annual productivity cost savings by 2012.