Private Equity Firm Curewell Capital Invests in Wilmington PharmaTech to Boost US API Production

Curewell Capital, a private equity firm focused on healthcare, has made a significant majority investment in Wilmington PharmaTech (WPT), a specialty contract development and manufacturing organization (CDMO). The move aims to address the gap in U.S. active pharmaceutical ingredient (API) production capacity and capabilities.

Strategic Investment to Enhance US Drug Manufacturing

The investment, which is expected to reach "nine figures" over time, will enable WPT to expand its production capacity and scale its end-to-end capabilities for manufacturing a full range of small molecule APIs in the United States. This strategic move comes at a time when the pharmaceutical industry is increasingly focused on bolstering domestic drug production capabilities.

Michael Dal Bello, Partner at Curewell Capital, emphasized the importance of the investment, stating, "We see a huge need to build U.S.-based manufacturing capabilities in this current environment, and bringing back drug manufacturing, high quality science and biopharma jobs to us, I think, is something that many of our customers are focused on."

Wilmington PharmaTech: Expanding Capabilities and Footprint

Founded in 2003, WPT has contributed to the development of multiple blockbuster drugs and offers a range of services from early discovery and clinical development through to commercial supply. The company operates from a 54-acre campus in Delaware, which includes two adjacent production facilities and dedicated suites for high-potency API production.

Dr. Hui-Yin "Harry" Li, founder and CEO of WPT, will retain a significant ownership stake and continue to lead the business. Li explained the company's evolution, saying, "We started our journey as a niche company, helping biotechs move investigational compounds into the clinic. As our clients' work has advanced, so too has our need to grow our manufacturing footprint."

Addressing the API Production Gap in the US

While many recent U.S. manufacturing investments have focused on later stages of drug production, such as drug substance manufacturing or fill-and-finish infrastructure, the fundamental steps required to produce drug ingredients have remained a potential blind spot for the nation.

Kent Payne, Ph.D., Operating Partner at Curewell, highlighted the specific need that WPT aims to address: "There are some larger players in the U.S. still—although probably many more in other countries—in the small molecule API space. But they're typically very large, focused on very large scale, and we think that there's a specific need for these more niche and again, difficult-to-manufacture compounds, where Harry and his team not only master the early chemistry, but the process development and scale-up."

This investment by Curewell Capital represents a significant step towards strengthening the U.S. pharmaceutical supply chain and enhancing domestic API production capabilities. As the industry continues to evolve, partnerships like this one between private equity and specialized CDMOs may play a crucial role in addressing critical gaps in the pharmaceutical manufacturing landscape.