ADELAIDE, Australia--(BUSINESS WIRE)--GEN1 Biotechnology Pty Ltd, a biopharmaceutical manufacturer based in Adelaide, Australia, has completed an AUD$8m (USD$6.3m) funding round, with an expected closing during September 2017.
Funds were raised from Australian private equity investors, local banks, and the South Australian Government’s Health Industries Fund.
GEN1 is building Australia’s first large-scale pharmaceutical factory manufacturing high-value injectable biopharmaceuticals for the Australian and international markets.
GEN1 Chief Financial Officer, Kishen Vijayadass, is buoyant about the funding announcement.
“This round of funding will support the company’s delivery of a factory in Adelaide that will benefit all Australians,” Mr Vijayadass said.
“Adelaide has a vibrant, fast-growing life sciences community and the South Australian Government, through Health Industries South Australia, was very responsive to GEN1 and provided invaluable support.”
Chief Executive of Health Industries South Australia Marco Baccanti said GEN1 will be a boon for South Australia and its health system.
“According to GEN1, it has the potential to save South Australia up to $70m a year in medication spending”, Mr Baccanti said.
“GEN1 will be in a great position to provide high-quality cost-effective products, and it will be doing so locally, right here in Adelaide.”
Health Industries South Australia attracted GEN1 to Adelaide by helping the company to establish and secure a government partnership, including a grant from the Health Industries Fund.
GEN1 raised its initial funding from Asian and European investors.
This latest round of AUD$8m (USD$6.3m) comes after the company set up its initial operations in Adelaide.
GEN1 will raise a total of AUD$160m (USD$126m) over the next three years.
The company secured a site in Adelaide’s Tonsley Innovation District, located just 20 minutes south of the CBD, allowing ease of access for employees and to critical infrastructure, such as Adelaide Airport.
GEN1’s factory will be the first of its kind and scale in Australia, manufacturing injectable medicines that are currently imported.
Medications will include treatment for chronic conditions such as cancer, hypertension and diabetes.
According to IMS Health, the market for injectable medication in Australia is larger than AUD$10 billion (USD$7.9b) a year with an estimated growth of 15-20% a year.
Health Industries South Australia is an agency of the South Australian Government, which helps health and life sciences companies to locate and grow in Adelaide.