In the Medium-Term ASV Initiatives 2030 Roadmap, announced in February this year, Ajinomoto Co. identified four strategic growth areas including Healthcare, leveraging the strengths of its proprietary “AminoScience” platform. Within the Healthcare area, in addition to the steady growth of its existing amino acid and small molecule drugs CDMO businesses, Ajinomoto Co. expects to deliver accelerated growth through the expansion of its oligonucleotide drugs, biopharmaceutical CDMO, regenerative medicine and antibody culture media, medical food businesses and more. Furthermore, from a medium- to long-term perspective, Ajinomoto Co. has identified gene therapy CDMO as one of its priority next-generation strategic businesses, functioning as a stepping stone to growth in advanced modalities(3) .

Gene therapy is a medical technology that treats genetic abnormalities causing diseases by modifying or adding genes in the body, mainly targeting hereditary diseases that are difficult to treat with existing therapies. Among the projects currently in the global gene therapy pipeline, the vast majority continue to utilize adeno-associated virus (“AAV”) (4)due to its increasingly well-established safety profile – over 100 clinical trials have been conducted (mainly in the United States), and seven new drugs have now been approved.

The expansion of the gene therapy CDMO market is expected to continue, driven by an increasing number of clinical trials and the subsequent increase in approved drugs. AAV manufacturing, with an excess of demand over supply in the short to medium term, requires advanced technical know-how and specialized manufacturing facilities, enabling technological differentiation. Forge is a gene therapy CDMO that has two critical capabilities in the gene therapy manufacturing value chain, AAV and plasmid DNA (4) manufacturing, with high-purity, high-yield AAV production technologies. With these capabilities, Forge has grown rapidly in recent years by building a track record through cGMP (5) compliant production for early-stage clinical trials for numerous biotech companies. Forge has one of the largest manufacturing facilities capable of commercial production responding to emerging gene therapy products with larger target patient populations, and has expandable space within its manufacturing facility to accommodate further business expansion.

Entering the Gene Therapy Business for Exponential Growth in Healthcare Ajinomoto Group Acquires Forge Biologics, a US-Based Gene Therapy CDMO for Approximately JPY 82.8 Billion Through this acquisition, integration ofAjinomoto Co.’s unique “AminoScience” technology platform with Forge’s technology development capabilities, we will open up new treatment options for rare disease patients, aiming to realize Ajinomoto Co.’s “Purpose” of contributing to the well-being of all human beings, our society and our planet. In addition, Ajinomoto Co. will establish a robust platform in the advanced therapy field, including optimizing plasmid supply chain, improving productivity and quality through the development and provision of optimized culture media based on Ajinomoto Co.’s patented technologies, and entering into the gene and cell therapy space through the deployment of Forge's gene therapy drug manufacturing know-how.

Entering this next-generation business of transformational medicines will enable Ajinomoto Co. to achieve an early realization of the 2030 roadmap while envision progress up to 2050, to promote transition into higher-value-added business, and to expedite growth in healthcare business and increased profitability based on the technologies and customers cultivated so far. The acquisition is scheduled to be completed in December 2023, subject to general preconditions stipulated in the merger agreement, including receipt of a regulatory clearance in the United States. The impact of the acquisition on the Ajinomoto Co.'s consolidated business results for the current period will be immaterial. Consolidated financial forecasts for the next period will be announced at the time of the year-end financial results announcement.