PharmStar said that moving R&D and production from its shared headquarters in Rocky Mount, NC, to a standalone facility would help accelerate the commercialisation process of its flagship liquid aspirin formula, Aquaprin.
Howard Pyhkitt, PharmStar CEO, said he believed the new site would provide greater economic benefits for the company.
“To better meet FDA CGMP guidelines, it is prudent for Aquaprin to be manufactured in a facility that has only one tenant,” he said.
“While our current location meets these FDA guidelines, it also would require that we continuously monitor and have knowledge of all materials that are located in our building, even those unrelated to PharmStar. After carefully evaluating the economics of these FDA guidelines, it made more sense to move PharmStar into its own building.”
PharmStar’s new facility is located in Wilson Corporate Park, North Carolina, near a third-party pharmaceutical testing site. The company can count Merck, Sandoz, Novartis, Purdue Fredrick, GlaxoSmithKline, and Nature’s Bounty amongst its new neighbours.
Phykitt said he was no stranger to Wilson, and suggested the proximity of other established pharmaceutical companies meant PharmStar had a readily available pool of talented pharmaceutical production, and research personnel to choose from when hiring.
“I have a history in Wilson,” he said, “I know the town, the people and the local economy. It doesn’t get much better for pharmaceutical companies such as ours.”
Meanwhile, Phykitt addressed shareholders’ concerns in the wake of the move and the news that PharmStar was assessing an offer for its old production site in Rocky Mount.
“I made a commitment to shareholders when we restructured the capitalisation table that the company has no need to dilute its common stock for at least the next six months,” he said.
“This decision will not affect that commitment.”