August Bioservices, a pharmaceutical manufacturing and support services company that recently announced big growth plans for its Nashville-based headquarters, has closed a $23.6 million round of funding.
The Series A extension round was led by investment firm Polaris Partners, which joined existing investor Oak HC/FT. The funds will go toward expanding August’s manufacturing capacity and enhancing its technology to support new production lines, according to a press release.
Last November, August executives announced plans to hire 180 people in the next five years as part of a two-phase, $64.7 million expansion. The first phase of the plan will renovate its existing plans — that work is expected to be complete later this year — and add manufacturing capabilities to support new products. Later, the company will add a facility on its Elm Hill Pike campus, creating “one continuous campus for drug discovery, development and manufacturing in Nashville,” the company said.
“Today the [contract development and manufacturing organization] market remains fragmented, and manufacturing capacity in the U.S. has not kept pace with the surging investor interest in early-stage biotechnology. The need to expand domestic manufacturing capacity has been underscored by the pandemic and international trade disputes,” said Darren Carroll of Polaris Partners, who has joined the August board as an observer. “We see significant potential in August’s commitment to meeting the manufacturing quality standards required by world-class biopharmaceutical companies.”
Brian Chee, managing partner of Polaris, joined August’s board as a director as part of the transaction.