Converting Office Buildings to CDMO Facilities: Opportunities and Challenges in Australia's Biotech Revolution

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The rise of personalised medicine is reshaping pharmaceutical manufacturing, creating new demands for flexible, localised production facilities.

The Transformation of Healthcare Manufacturing

This decade will be remembered as a pivotal moment in healthcare history. Medicine is evolving from the traditional "one tablet fits all" approach of large molecule blockbuster drugs to a sophisticated science of personalised healthcare. Future generations will view this era as the time when treatments became truly preventative, predictive, and personalised.

The advances driving this transformation are remarkable: Cell and Gene Therapies (CGT), CAR-T cell treatments, RNA editing, and the strategic application of AI and automation. Currently, approximately 4,000 CGT candidates are in development pipelines globally, with roughly half focused on gene therapies targeting cancer, rare diseases, and metabolic and neurodegenerative disorders.

The Shift to Decentralized Manufacturing

The traditional global "Centre of Excellence" model, where a few strategically located manufacturing facilities supply the entire world, is being fundamentally challenged. The COVID-19 pandemic accelerated a marked shift towards decentralisation, creating demand for smaller, localised facilities that are flexible, modular, and strategically positioned near hospitals, universities, and biomedical research clusters.

This new paradigm requires facilities that can adapt to varying development stages, from R&D laboratories (typically PC2 or PC2 LS biosafety levels) during initial research phases, to pilot-scale facilities for clinical trials, and ultimately to fully-fledged commercial manufacturing cleanroom facilities.

The CDMO Revolution

The high cost of entry for small biotech startups, particularly during the scale-up phase, has created significant opportunities for Contract Development and Manufacturing Organizations (CDMOs). Manufacturing CGTs requires highly specialized expertise in viral vectors, engineered cell lines, and plasmid DNA, along with aseptic cleanrooms and stringent Good Manufacturing Practice (GMP) requirements.

Many treatments demand small-batch, rapid turnaround manufacturing processes, such as autologous CAR-T therapies made from individual patient cells. This has driven the emergence of regional "point-of-care" manufacturing hubs near hospitals, enabling faster delivery of patient-specific therapies.

Major multinational CDMOs including Lonza, WuXi AppTec, Thermo Fisher, Charles River, and Catalent have invested billions globally in viral vector and plasmid DNA capacity. Some offer comprehensive end-to-end services, from patient cell collection logistics to GMP-modified CAR-T release testing. Others, such as Samsung Biologics and BioNTech, are expanding mRNA vaccine and RNA therapy production capabilities, repurposing post-COVID expertise for cancer and rare disease applications.

Global Landscape and Australia's Position

The United States leads global CGT capacity, pioneering in-hospital point-of-care manufacturing for autologous CAR-T and autoimmune cell therapies. Europe is developing decentralized GMP cell therapy hubs, while the Asia-Pacific region sees growth in Singapore (WuXi, Thermo Fisher) and Japan (Minaris, Takeda). China has built massive domestic CGT capacity for both internal use and export markets.

Australia currently has limited commercial-scale CDMO capacity, but encouraging growth trends are emerging. The country's strong academic research institutions, active clinical trials environment, and government support for advanced therapies provide a solid foundation. Hospital-based manufacturing of autologous therapies is growing, and many global CDMOs are establishing collaborations within Australian biotech hubs through local academic and hospital partnerships.

While viral vector and plasmid manufacturing remains limited, with most vectors for Australian CGT programs still imported, several mRNA facilities are under development (Moderna, Macquarie, and BioNTech), indicating growing momentum in RNA therapy development.

The Real Estate Challenge and Office Conversion Opportunity

One significant challenge facing CDMOs in Australia is the chronic shortage of industrial real estate near strategic hubs such as hospitals, universities, and biotech clusters. However, the post-COVID shift toward remote work has created abundant availability of high-quality commercial office properties, presenting a unique conversion opportunity.

Why Convert Offices to CDMO Facilities?

• Cost & Speed: Office buildings are cheaper and faster to acquire than greenfield sites, with shorter lead times in key biotech hubs (Melbourne, Sydney, Brisbane).

• Location: CGT CDMOs need proximity to hospitals, universities, and clinical trial centres, exactly where quality office buildings sit.
  
  

The Reality Check: Major Challenges

Structural Issues

• Floors can't handle heavy equipment (offices: 2.5-4 kPa vs labs: 6-12 kPa needed)

• Low ceilings (2.7m) lack space for cleanroom requirements (need 1.2m+ above ceiling)

Services Overhaul Required

• Complete HVAC replacement for cleanroom air standards (20-40 air changes/hour)

• New power systems with backup generators and UPS

• Specialised utilities: clean steam, Water for Injection, process gases

• Biological waste treatment systems

Safety & Compliance

• PC2/PC3 containment for viral vectors and modified cells

• TGA GMP licensing compliance for sterile biologics

• OGTR approval for genetically modified organisms

Bottom Line: While appealing for speed and location, office conversions often cost 1.5-2x more than purpose-built facilities and may compromise operational efficiency.

Strategic Recommendations

Office building conversion to CDMO facilities is most viable for small-scale, early-phase, or analytical laboratories, particularly point-of-care cell therapy facilities for autologous CAR-T production or quality control laboratories. Conversions are particularly attractive in Melbourne's Parkville precinct, Sydney's Macquarie Park, and Brisbane's Translational Research Institute area due to skilled workforce proximity.

Some councils, such as the City of Melbourne, have established biotech precinct plans that streamline the permitting process, while others may require rezoning.

However, commercial office building conversion is not ideal for commercial-scale viral vector or allogeneic therapy manufacturing, as retrofits often prove more expensive and operationally compromised than greenfield or purpose-built biotech facilities.

The Path Forward

For immediate needs, conversions may serve as short-term solutions for pilot facilities. However, long-term competitiveness in Australia's growing CGT sector will require purpose-built facilities. Existing warehouses and industrial buildings present more suitable conversion opportunities for commercial-scale CGT operations due to their inherent height and layout, which typically accommodate "box within a box" cleanroom facilities with adequate ceiling height, plant areas, and expansion capability.

As Australia continues to build its position in the global personalized medicine revolution, strategic facility planning will be crucial to supporting the growth of this transformative healthcare sector.