GTC Biotherapeutics (fka GTCB)

[DewDiligence]

Re: Improvements in manufacturing yield

According to DNA’s webcast yesterday, during the past five years, the yield per batch has improved >2x for Rituxan and Herceptin and >3x for Avastin. (Avastin is a much newer drug and hence the improvements in yield are coming off a lower base.)

More generally, it’s clear that substantial improvements in product yield have been made in recent years by several biopharmaceutical companies and undoubtedly they will continue to be made. However, the industry-wide improvements in this regard have for the most part been limited to mAbs. Moreover, while impressive from a gross-margin standpoint, these improvements have not (yet) obviated the biotech industry’s need to build hugely expensive bioreactors that require years of planning, construction, and validation.