Daiichi Sankyo plans to invest approximately $1.9 billion to build manufacturing facilities for cancer drugs in Japan, the U.S., Germany, and China, according to Nikkei. The facilities are part of a strategy to diversify its production capabilities for cancer treatments, including antibody-drug conjugate (ADC) ENHERTU.

As reported, the expansion aims to mitigate potential tariffs or regulatory changes between countries that could affect the company’s supply chain and distribution network. By establishing facilities across multiple regions, the company aims to maintain consistent production and delivery of its cancer drugs.

As reported by Nikkei, the company plans to invest $491.7 million at an existing plant in Hiratsuka, Japan. In Munich, Germany, an investment of $894 million will bolster production sites for Enhertu and other products. In China, the company plans to invest $153 million to establish a new Shanghai site. Daiichi’s U.S. site in Ohio, will see a $357.8 million investment for additional facilities at its existing plant.

This past December ENHERTU was approved in China for the treatment of patients with HR positive, HER2 breast cancer that has progressed on one or more endocrine therapies in the metastatic setting. Also, ENHERTU was granted breakthrough therapy designation in the U.S. as post-neoadjuvant therapy for patients with HER2 positive early breast cancer.

ENHERTU is a specifically engineered HER2 directed DXd antibody drug conjugate (ADC) discovered by Daiichi Sankyo and being jointly developed and commercialized by Daiichi Sankyo and AstraZeneca.