From Film to Pharma: Inside FUJIFILM Biotechnologies’ $5 Billion Growth Strategy

“Current revenue scale is $1.3 billion. We anticipate it will grow to $5 billion, just in five years’ time. We’ve committed to invest about two-thirds of FUJIFILM’s entire annual capex in this business.”

Toshihisa “Toshi” Iida, Chairman of FUJIFILM Biotechnologies Group and Board Director at FUJIFILM Corporation, reveals how 89 years of healthcare heritage drives the company’s ambitious CDMO expansion strategy.

Toshihisa brings 34 years of experience at FUJIFILM Corporation, having witnessed the company’s transformation from the golden age of photographic film through the digital revolution to its current position as a major biotechnology manufacturer. His journey spans international marketing, European operations, and now leading the Life Sciences strategy for the 91-year-old corporation.

In this exclusive podcast interview, Toshihisa explains how FUJIFILM’s unique modular manufacturing approach and zero-defect philosophy position the company to achieve unprecedented growth whilst delivering scalability, speed and resilience to pharmaceutical partners worldwide.

The Hidden Healthcare Heritage Behind FUJIFILM’s CDMO Success

Whilst many still associate FUJIFILM with cameras and photography, the company’s healthcare credentials stretch back nearly to its founding. This deep-rooted experience in precision manufacturing provides the foundation for its biotechnology ambitions.

“FUJIFILM has an 89-year healthcare background history. In 1936, just two years after FUJIFILM was established, we manufactured our first X-ray film,” Toshihisa explains. “Many people see FUJIFILM as a camera company, but the truth is that FUJIFILM has been an 89-year healthcare company.”

The company’s innovation in medical imaging continued with pioneering work in digitalisation. “FUJIFILM was the first company globally to invent computed radiography. We started manufacturing analogue-based X-ray film, then became the first company to invent digitalisation for medical diagnostic imaging.”

This technological heritage now powers the company’s expansion beyond diagnostics into comprehensive healthcare solutions. “We are expanding our footprint from diagnostic field to prevention and treatment to be a comprehensive healthcare company. This life sciences investment and business is crucial to make it happen.”

Zero-Defect Manufacturing: From Film to Pharmaceuticals

The transition from photographic film to pharmaceutical manufacturing might seem dramatic, but Toshihisa identifies striking parallels that make FUJIFILM uniquely suited to bio-pharma production.

“Zero-defect manufacturing is the DNA of FUJIFILM. When I joined the company, the first thing I learned is that people buy our products – photographic films – to keep their happiest moments,” he reflects. “If we fail manufacturing one single roll of film, the person who bought our product loses their entire memory.”

This philosophy translates perfectly to pharmaceutical manufacturing, where quality failures can have life-threatening consequences. “That spirit is our DNA, the heart of our DNA. Zero-defect manufacturing – that philosophy and spirit is quite fitting for bio-pharma manufacturing.”

The company leverages additional technological capabilities from its imaging heritage. “Things like digitalisation and artificial intelligence – FUJIFILM has good history, knowledge and experience with AI. We developed these technologies in digital imaging and diagnostic imaging business, so now we can leverage those technological capabilities into this life sciences field.”

The Kojo X Revolution: Modular Networks for Global Resilience

FUJIFILM’s most innovative contribution to CDMO manufacturing comes through its Kojo X concept – a modular approach that promises to revolutionise pharmaceutical supply chain resilience.

“Kojo has double meaning in Japanese – one is factory, the other is advancement or improvement. So Kojo X is advancing the factory, or improvement of the factory,” Toshihisa explains. “We are building the industry’s largest interconnected, modular network of bio-manufacturing facilities.”

The strategy centres on creating standardised facilities across multiple continents. “It’s large scale in Denmark and Holly Springs in North Carolina, mid to small scale in the UK and Japan. Modular design, same equipment, same operating system, same quality system, and even people moving across the network.”

This approach directly addresses the three critical values pharmaceutical partners demand: “Scalability, speed and resilience. Behind our clients, patients are waiting for innovative medicines, and we developed Kojo X as an enabler to deliver these values.”

The modular network offers unprecedented flexibility for pharmaceutical companies. “This gives partners unprecedented manufacturing flexibility across institutional knowledge and speed in bringing life-saving treatments to market.”

From Acquisitions to Organic Growth: A $10 Billion Investment Strategy

FUJIFILM’s journey into biotechnology began 15 years ago with strategic acquisitions, but the company has now shifted to massive organic growth investments.

“We started entering this life sciences business when we acquired our UK site and RTP North Carolina site back in 2011. Since then, the first 10 years we grew mainly through M&A to acquire capabilities and modalities,” Toshihisa reveals.

The investment scale demonstrates FUJIFILM Corporation’s commitment to biotechnology. “The company has already committed over $10 billion investment in this life sciences space. We’ve committed to invest about two-thirds of FUJIFILM’s entire annual capex in this business.”

Current revenue targets reflect this ambitious investment strategy. “Current revenue scale is $1.3 billion. We anticipate it will grow to $5 billion in just five years’ time.”

Recent partnerships validate this approach, including the landmark Regeneron collaboration. “The collaboration underscores our role as a critical partner in scaling production for some of the world’s most innovative biologic medicines servicing millions of patients worldwide.”

Horizontal Specialisation: The Future of Pharmaceutical Manufacturing

Looking ahead, Toshihisa predicts the pharmaceutical industry will follow the semiconductor model towards greater outsourcing and specialisation.

“I believe it will go more and more outsourced. If you look at the semiconductor industry, horizontal specialisation is well advanced. The semiconductor industry is mostly CDMO players manufacturing,” he observes.

This trend creates opportunities for CDMOs that can demonstrate clear value propositions. “We really need to know what value CDMOs can provide our partners – scalability, speed and agility. Those are the three key things our partners are looking for us to deliver.”

The company’s global network strategy positions it well for this future. “Our core strategy is to get our facilities and manufacturing where our clients are and where the patients are. In the current geopolitical situation, we are in a very good position within this CDMO competition.”

Rebranding for End-to-End Solutions

FUJIFILM’s recent rebranding from FUJIFILM Diosynth Biotechnologies to FUJIFILM Biotechnologies reflects a strategic repositioning towards comprehensive solutions.

“This is not just a rebranding exercise. This is redefining our vision and value to clients and the market,” Toshihisa emphasises. “Under the umbrella of ‘Partners for Life’, we can redefine our group purpose as end-to-end solution providers.”

The integrated approach spans the entire drug development lifecycle. “We support from drug discovery stage, preclinical, early clinical, late clinical, to commercialisation and large-scale manufacturing. We want to be true partners to support the end-to-end critical journey to deliver advanced medicines to patients who are waiting for many years.”

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