Pharmatek opens new plant; Pace buys P3

Both firms are reacting to the growing demand for analytical testing services in the pharma industry. US contract chemistry development firm Pharmatek Laboratories has tripled its laboratory and manufacturing space by moving its operations to a new facility. The new plant, which was initially expected to be ready last December, will focus on analytical development, preformulation testing, formulation development, GMP manufacturing, and stability storage and testing, as demand for these types of services rapidly increases, the firm said. By expanding its capacity Pharmatek will be able to offer enhance services to its pharma and biotech clients, the firm said. This ties in with the current trend for outsourcing companies to expand their offerings to provide services along the length of the drug development pathway. The California-based company also said that the new 34,000 sq. ft space's lease includes an option to expand to a total of 64,000 sq. ft, which allows for future growth of its operations. "The new facility will support our rapidly growing pharmaceutical development business with space for additional expansion in the future,"​ said Timothy Scott, president of Pharmatek. "The increased space enables us to enhance both our capacity and services. We can now conduct a larger number of projects and provide our clients with better service on those projects." ​ Meanwhile, Pace Analytical Services has taken a different expansion approach, announcing that its life sciences subsidiary has acquired P3 Scientific, a US-based lab testing firm focused on pharma and medical device testing which employs 80 people. Under the terms of the deal, Pace's Minnesota-based life science lab will be combined into P3's 40,000 sq. ft laboratory facility - also located in Minnesota. This move will strengthen Pace's position in product support of pharmaceutical and medical device products as well as combination drug-device products, also known as "combo" products - an area with high potential for contract testing companies. Such products are gaining in popularity as they are tipped to be safer and more efficient than standard drugs, have the potential to extend the lifecycle of existing drugs for manufacturers and, in some cases, can improve patient compliance. It is estimated that 30 per cent of new products under development are combo products. However, for drug manufacturers, along with new market opportunities, the combination of drugs and devices also brings a host of challenges, and according to an industry player, drug companies struggling to meet the unique testing guidelines, practices and regulations generated by the development and production of this fairly new type of products should rely on outsourcing - good news for services providers like Pace. Both firms hope that the combined lab operations - which will provide services including raw materials testing, microbiology testing and finished product testing - will gain a market leadership position in the region, focusing on pharma and medical device testing. Financial details were not disclosed. "The combination of P3 Scientific and Pace brings together the two leading commercial laboratories in Minnesota to create a stronger pharmaceutical and medical device testing capability," said Steve Vanderboom, CEO of Pace Analytical Life Sciences.