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US Government Offers $75M Support For Lipid Systems Expansion Used In mRNA COVID-19 Vaccines

  • The U.S. government will provide up to $75 million to expand U.K.-listed Croda International Plc's (OTC: COIHF) U.S. manufacturing capacity of ingredients for lipid systems used in novel therapeutic drugs, such as mRNA vaccines.

  • Croda will also invest up to $58 million.

  • The investment will be used to establish a new lipid facility in Lamar, Pennsylvania. Construction is expected to start later this year, with the new capacity anticipated in 2025.

  • The investment supports the expansion of Croda's portfolio, by creating a third manufacturing site for lipid systems, alongside Croda's existing Alabaster, Alabama, U.S. (Avanti) and Leek, U.K. capabilities.

  • The cooperative agreement is a joint award from the Biomedical Advanced Research and Development Authority (BARDA), and an arm of the U.S. Department of defense will join forces for preparedness for future health emergencies.

  • Financial Times writes that Pfizer Inc (NYSE: PFE) / BioNTech SE (NASDAQ: BNTX) and Moderna Inc's (NASDAQ: MRNA) COVID-19 vaccines were the first approved jabs to be made with mRNA technology.

  • The vaccines rely on bubbles of fat known as lipid nanoparticles to deliver genetic codes that teach the immune system to recognize the virus.

  • Lipid systems offer significant potential as the delivery system for many nucleic acid applications, including novel mRNA-based therapeutics, such as flu vaccines and cancer treatments.

  • Given the current clinical development pipeline's scale, the lipid systems market is expected to grow significantly over the next ten years.

  • Image by Spencer Davis from Pixabay

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