Phlow Corp. recently closed on a $36 million Series B capital funding round which it plans to use to expand its commercial offerings, in particular its CDMO program.
According to Virginia-based Phlow, the funds will be leveraged towards the "rapid growth" of its CDMO program, called cdmoX, that provides a range of customized services for small molecule APIs and key starting materials (KSMs).
Phlow is public benefit drug manufacturing corporation, launched in 2020 with $354 million of federal government funding for advanced manufacturing of America's most essential medicines at risk of shortage, including medicines for the COVID-19 pandemic response. The contract, awarded by BARDA, included an additional $458 million in potential options for long-term sustainability, for a total of $812 million. Under the four-year contract, Phlow was to manufacture APIs and finished dosage forms for over 12 different medications being used to treat COVID patients.
For proponents of reshoring, the 2020 generics manufacturing deal with Phlow was the first victory on a road being built to create jobs, provide economic stimulus, and reduce U.S. reliance on API imports.
Overseas outsourcing of APIs became a political flashpoint back in 2018, when a widespread blood-pressure medication recall triggered by tainted APIs from China rocked the industry. Then, the pandemic struck — and shortages of personal protective equipment and essential medicines gripped the public consciousness and revealed weaknesses in the U.S. health care supply chains.
The push to reshore drug manufacturing gained momentum and Phlow, whose mission is to "protect America’s medicine cabinet" was perfectly positioned.
Phlow has an R&D lab, co-located with the U.S. Pharmacopeia (USP) at the Advanced Pharmaceutical Development Center in Richmond, VA, as well as new manufacturing facilities in Petersburg, VA. The USP alliance, announced in 2021, focuses on Phlow’s “flow chemistry” and other continuous processes that the company is leveraging to provide end-to-end manufacturing for generic drug ingredients.
Now, according to Phlow, the boosting its CDMO services "will make it possible for Phlow’s customers to bring critical medicine supply chains back to the United States in order to help prevent future disruptions from public health threats, trade disputes, and geopolitical challenges."