One of Nashville’s few, but growing, biopharma companies added fresh funds to its coffers Thursday.
August Bioservices LLC — which focuses on drug discovery, research and manufacturing — has closed a $23.6 million round of funding, according to a news release, led by Polaris partners and joined by existing investor Oak HC/FT.
The funds will be used to expand the company’s biopharma manufacturing capabilities, including the production of sterile injectable medications.
As part of the raise, Polaris Partners Managing Partner Brian Chee will join August Bioservices’ board of directors.
“We are delighted to welcome Polaris Partners to the August Bioservices team,” Jenn Adams, CEO of August Bioservices, said in the release. “Polaris shares our focus on offering the highest quality research, development and manufacturing services to our customers as they work to provide lifesaving medications to patients who need them. We look forward to a long and productive partnership as we deploy resources toward serving the global biopharmaceutical industry with increasing impact.”
In November, August Bioservices announced a $64.7 million expansion of its Nashville manufacturing operations that will add 180 jobs over the next five years, almost quadrupling its workforce at the time. The investment includes initial construction that will double its building space at 1845 Elm Hill Pike, with room to expand beyond that.
The company is receiving $2 million from the state for the 180-job expansion.
The expanded facility is another example of Middle Tennessee’s efforts to diversify its health care industry. While Nashville is rich in major health care services firms, including HCA Healthcare Inc. (NYSE: HCA) and Community Health Systems Inc. (NYSE: CYH), the city lags behind in biotech and pharma. The select club includes Harrow Health Inc. (Nasdaq: HROW), which moved its headquarters from San Diego to Nashville in 2019, and Cumberland Pharmaceuticals Inc. (Nasdaq: CPIX).
The first stage of August Bioservices’ expansion is expected to be completed in late 2021, according to the release. The second stage of the project will add a high-speed production facility next to its existing building, creating a single campus for drug discovery and manufacturing in Music City.
