Phlow raises funds to expand its CDMO capabilities
Phlow Corporation is a contract development and manufacturing organization (CDMO) that was launched in 2020, and is a public benefit corporation. The latter term, in Phlow’s case, refers to its aim of boosting domestic production of key starting materials (KSMs), active pharmaceutical ingredients (APIs), and finished pharmaceutical products that are regarded as critical to US healthcare operations.
The CDMO announced that it had sealed $36m (€32.7m) through a Series B capital raise. Phlow stated that it would use the capital to expand its commercial offerings, which includes growing its CDMO program, called ‘cdmoX.’ According to Phlow, its cdmoX program provides CDMO services for small molecule development, with its infrastructure being located in the US.
Phlow stated that its newly opened manufacturing facility in Petersburg, US, and its partnership with US Pharmacopeia, which saw the opening of laboratories for API R&D, would enable customers to on-shore their drug development and manufacturing services. The two partners created the laboratory space in Richmond and are ‘co-located’ at the space, where they provide R&D services to both the pharma industry and the US government.
Phlow outlined that having CDMO services based solely in the US is an advantage to its clients because it can help to prevent future disruptions from public health threats, trade disputes, and geopolitical challenges.
The CDMO also noted that onshoring manufacture of medicines can reduce drug shortages that are occurring in North America. The challenge of ensuring more manufacturing occurs in the country where the medication is used has become a central topic in the industry in recent years.
In addition, Phlow stated that its use of continuous manufacturing, as well as flow chemistry and other advanced manufacturing processes, would lead to faster regulatory approvals.
“Our recent investment round further ensures our bold mission and progress towards helping to solve for drug shortage challenges while providing end-to-end solutions in the US that are fully integrated, comprehensive, environmentally friendly and cost competitive,” said Eric Edwards, CEO of Phlow.
In an interview with Outsourcing-Pharma, Edwards previously said that essential medicine shortage have become a consistent challenge for the US healthcare system. He pinned this down to the country’s reliance on a ‘few foreign sources’ of critical ingredients that are used to create its supply of finished essential pharmaceutical products.