The company's wholly-owned subsidiary, CPC Scientific Inc., has entered into a construction contract with Market One Builders for the development of the Rocklin campus, with a guaranteed maximum price of $22.7245 million.
Establishing a local facility in the United States provides the company with a safeguard against the impacts of the Biosecure Act passed by the U.S. House of Representatives in September 2024, as well as any potential additional tariffs on imports from China. This ensures uninterrupted supply to North American customers regardless of future policy developments.
Furthermore, a production facility located in the U.S. will enable faster response times, shorter delivery cycles, and more efficient service for clients across North America.
The Rocklin campus will also enhance the company's capability to provide end-to-end CRDMO services to its North American clientele. These services will encompass GMP-compliant API production, analytical development, quality control release, and stability testing, all delivered locally.
Coupled with the company's existing U.S.-based business development team, local manufacturing will facilitate faster and more flexible customer engagement, including in-person collaboration and the development of customized solutions.
This strategic move allows the company to directly capture the rapidly growing opportunities within the global peptide CRDMO market from within the United States.
More broadly, the Rocklin campus establishes the company's second production hub outside of China, complementing its existing facilities in Hangzhou. This diversified global footprint mitigates risks associated with concentration in a single jurisdiction and enables the company to fulfill orders for multinational pharmaceutical and biotech clients across multiple regions.
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