A biomedical research facility will expand to commercial scale, bringing life-saving therapies and vaccines from the laboratory and into the clinic in a move the NSW government hopes will make the city a global research hub.

The world-leading lab based at Sydney's Westmead uses viral vectors - a key component of many cell and gene therapies - to treat cancer, genetic diseases and infections.

Viral vector technology uses viruses that are harmless to humans to carry genetic therapies for the target organs and systems that cause significant human diseases.

Establishing a commercial company provides a strong base for the facility's long-term success, the state government said.

Health Minister Ryan Park said the facility will have life-changing benefits for people suffering from genetic diseases, cancers and viral infections.

"This is about putting NSW at the forefront of the latest technology used to treat things like cancer, viral infections and genetic disorders," he told reporters on Sunday.

"These therapies are expanding rapidly, targeting more and more genetic diseases, cancer and infections - significantly increasing the number of patients who can and will benefit from viral vectors."

Mr Park said the expansion in potential applications and treatments is not matched by current manufacturing capacity.

Treasurer Daniel Mookhey said the $134 million investment will anchor a medical tech ecosystem in Sydney, with NSW already a globally recognised leader in developing and delivering gene therapies, cell therapies and vaccines.

"This investment sends a message to all our world leading scientists that they can practice their research here and don't need to go offshore," he said.

"No such facility like this exists anywhere in the country.

"This commercial-scale facility will allow us to meet local manufacturing demand, and further establish us as a respected leader in this field."

Professor Ian Alexander, head of the gene therapy research unit at Sydney Children's Hospital, said there are 3000 genetic therapies in the developmental pathway globally, many in Australia.

"But most of them are in the laboratory, and what this initiative is going to help us do is take those therapies out of the laboratory and into the clinic at speed and with safety," he said.

Stage one is operational for use in gene therapy research, with the first clinical trial expected in 2025 using vectors from the facility.

Stage two is under construction and will provide NSW with commercial-scale viral vector manufacturing, capable of meeting the growing demand.

The company will make the vectors and supply them to specialised healthcare staff, who will deliver the therapies to patients.

The state government has committed $134.5 million to establish the facility and to manufacture viral vector products for research and clinical trials.