PCAS joint venture sets up US kilolab

17-Aug-2009 - Last updated on 18-Aug-2009 at 09:59 GMT

PCAS is setting up a kilolab in California, US to target the small-scale synthesis market, which it believes will benefit its large-scale operations by establishing relationships earlier in development.

The current good manufacturing practice (cGMP) facility in Santa Rosa is the focal point of a joint venture between PCAS and Nanosys. Prior to the joint venture PCAS lacked a US facility and this hindered development of some aspects of the business.

Joseph Tessier, vice president of PCAS America, explained to in-PharmaTechnologist that US clients prefer to use local facilities for small-scale production. PCAS can now meet this demand and because the facility is in California it is ideally located to capture the biotech market.

Furthermore, Tessier believes the early-stage synthesis market is less competitive than its traditional sector, which is EU-based large-scale production. Tessier expects that some clients that use the small-scale facility will continue to use PCAS for late-stage supply needs.

Nanosys and PCAS operate in different markets and consequently the joint venture could benefit both. PCAS’ large-scale production operations will potentially gain a steady flow of clients and Nanosyn, which provides drug discovery services, extends its offering into material supply.

The Santa Rosa facility was fully equipped when the companies acquired it but the joint venture partners are planning to upgrade some aspects. Tessier explained that an R&D upgrade is planned and additional analytical equipment will be installed.

Operations have already begun at the facility, with the partners supplying some of the previous owner’s clients and establishing contracts with new customers, according to Tessier.

Establishing the JV

The joint venture is a consequence of a serendipitous moment, according to Tessier who explained how the project began. Tessier met an ex-colleague who now works at Nanosys at a conference and the idea a joint venture was formed.

A facility in South San Francisco was originally targeted but this was taken off the market before the deal went through. The companies then identified the Santa Rosa, which became available after its owner, Seres Laboratories, went bankrupt.