A Nashville-based biotechnology company will expand its local facility and create at least 180 new jobs over the next five years, August Bioservices and Tennessee officials announced Wednesday.
The drug discovery, development and manufacturing company will invest $64.7 million to expand the existing Elm Hill Pike facility, which is slated for completion in late 2021. August Bioservices will also construct a a new, state-of-the-art manufacturing facility capable of manufacturing at a commercial scale on the undeveloped land behind its current location.
“Contract manufacturers like this play a very important role in the future of not only this pandemic, but of the country, and that’s why it’s exciting that Tennessee is right in the center of it today with this announcement,” Gov. Bill Lee said at a news conference Wednesday.
The expansion is the result of a partnership between August Bioservices and the Tennessee Department of Economic and Community Development (TNECD), and a step toward the company’s goal of becoming a “one-stop-shop (contract development and manufacturing organization) for clinical and commercial injectable therapies,” according to a news release.
Nashville Mayor John Cooper welcomed the company Wednesday and said developments like this are what makes Nashville the “city of the future.”
Former Tennessee Senator William Frist said Nashville has become the “Silicon Valley” of healthcare services, with a $94 billion healthcare industry and about 450 healthcare companies in the Nashville and Middle Tennessee area.
Frist — whose father and brother co-founded the nation’s largest hospital company, the Hospital Corporation of America — played a role in encouraging the partnership, TNECD Commissioner Bob Rolfe said Wednesday.
Frist said Tennessee’s biggest gap in its healthcare industry has been pharmaceutical biotech, and August Bioservices fills that gap and represents a nucleus that will continue to draw talent to the area.
“There’s no city in America that touches more people in health services than Middle Tennessee, and Nashville, Tennessee, hands down,” Frist said.
August Bioservices’ expansion includes the addition of lyophilization and terminal sterilization to its existing cGMP fill and finish capabilities, and the new manufacturing facility will include multiple high-speed production lines capable of filling vials, IV bags, prefilled syringes and a multitude of other sterile injectibles containers.
August Bioservices rebranded after Oak HC/FT acquisition
The company, formerly PMI BioPharma Solutions, rebranded to August Bioservices in July after an investment from healthcare- and financial technology-focused venture capital firm Oak HC/FT.
August Bioservices announced several executive appointments alongside its rebrand, including:
- CEO Jenn Adams
- CFO Mats Bjoerkman
- EVP of Operations Joe Mase
- SVP of Commercial Development Brad Leach
“We couldn’t be more delighted to be laying down roots and creating jobs in Tennessee,” Adams, a former Chicagoan, said in a news release. “The investments that we are making to expand our workforce, our capabilities and our capacity will enable us to better serve our global customers and to support the growing biotech industry here in Nashville. Most importantly, everyone at August Bioservices is extremely proud to advance work that provides lifesaving treatments to patients that need them.”
Adams previously served as an Executive in Residence for Oak HC/FT prior to her appointment as CEO of August Bioservices. She has 30 years of healthcare leadership experience, including serving as SVP and President for Clinical Product Solutions at AmerisourceBergen, an American drug wholesale distribution company. She continues to serve Oak HC/FT as a senior advisor.
Oak HC/FT purchased the 3.74-acre property at 1845 Elm Hill Pike from Laager Investments, Inc. for $12 million in July, according to Metro records. Laager Investments bought the property in 2003 for $2.4 million.
Founded in 2014, Oak HC/FT is headquartered in Greenwich, Connecticut, and has offices in Boston and San Francisco.
Cassandra Stephenson covers business at The Tennessean, part of the USA Today Network — Tennessee. Reach Cassandra at firstname.lastname@example.org or at (731) 694-7261. Follow Cassandra on Twitter at @CStephenson731.