Activation Capital, a premier entrepreneurship and ecosystem development organization, has announced the launch of a pharmaceutical manufacturing cluster accelerator in Central Virginia. Supported by a coalition of private-public entities from Greater Petersburg and Greater Richmond, the accelerator aims to foster the growth of advanced pharmaceutical manufacturing and R&D in the region. Funded by $2.5M in seed money from GO Virginia and others, this initiative seeks to establish a globally competitive pharmaceutical industry, enhance domestic manufacturing of essential medicines, and lower their costs. This first-of-its-kind initiative in the Commonwealth of Virginia will accelerate infrastructure, workforce development, and supply chain development efforts. The pharmaceutical manufacturing cluster accelerator is expected to significantly contribute to national security and economic prosperity by boosting domestic production of vital medicines.

Announcement of Cluster Accelerator Launch

[Richmond, VA – October 4, 2021] Activation Capital, a leading entrepreneurship and ecosystem development organization, announced the launch of a cluster accelerator to catalyze the growth of advanced pharmaceutical manufacturing and R&D in Central Virginia. A coalition of private-public entities from Greater Petersburg and Greater Richmond helped form the accelerator, secured $2.5M in seed funding from GO Virginia and others, and appointed Activation Capital as the organizing entity – a first-of-its-kind initiative for the Commonwealth of Virginia.

Goal of the Regional Cluster Accelerator

The regional cluster accelerator’s goal is to help build a globally competitive pharmaceutical manufacturing and R&D industry in the Central Virginia region. The work will fast-track regional efforts to reshore and secure the production of essential medicines in the United States, lower their costs and ensure access to quality medicines in the U.S. and around the world. Many organizations will support scale-up in infrastructure, workforce development, and supply chain development.

Importance of Domestic Manufacturing

“Today, nearly all of the active ingredients and/or their starting materials for Americans’ essential medications come from overseas, leaving us vulnerable to shortages. VCU Engineering’s Medicines for All Institute is an internationally recognized leader in improving the manufacturing of generic drugs by curbing waste, cutting costs, and reducing pollution,” said Dr. Frank Gupton, CEO of the Medicines for All Institute and co-founder of Phlow Corporation.

Impact and Potential of the Initiative

With as much as 73% of the raw materials used to produce active pharmaceutical ingredients manufactured outside of the United States, this initiative targets an issue of importance to national security and economic prosperity. The accelerator builds upon 18 months’ work and initial investments in the region to make Virginia a leader in the nation’s efforts to boost state-side production of essential medicines.

Founding Leadership and Board Members

The founding leadership board also named Robby Demeria, chief of staff for Phlow and former deputy secretary of commerce and trade, as founding chair. Jeff Gallagher, a 25-year life sciences sector veteran, was named interim executive director to begin work immediately on its ambitious plan.

About the Cluster Accelerator for Advanced Pharmaceutical Manufacturing and R&D

The Cluster Accelerator is an initiative designed to accelerate the scale-up of a globally competitive ecosystem in Central Virginia focused on manufacturing critically important medicines within the United States. The initiative is led by a multi-jurisdictional coalition of public and private sector stakeholders actively engaged in the cluster’s R&D, manufacturing, workforce development, and supply chain development.

About Activation Capital

Established in 1993, the Virginia Biotechnology Research Partnership Authority (dba Activation Capital) is a political subdivision of the Commonwealth of Virginia. Its mission is to grow life sciences and other advanced technology innovation by promoting scientific research and economic development that attracts and creates new jobs and companies.

About GO Virginia / GO Virginia Region 4

GO Virginia is a state-funded initiative administered by the Virginia Department of Housing and Community Development (DHCD) that strengthens and diversifies Virginia’s economy and fosters the creation of higher-wage jobs in strategic industries.

Question & Answer

What is the goal of the pharmaceutical manufacturing cluster accelerator in Central Virginia?

The goal of the accelerator is to foster the growth of advanced pharmaceutical manufacturing and R&D in the region, establish a globally competitive pharmaceutical industry, enhance domestic manufacturing of essential medicines, and lower their costs.

How is the pharmaceutical manufacturing cluster accelerator funded?

The initiative is funded by $2.5M in seed money from GO Virginia and other private-public entities from Greater Petersburg and Greater Richmond.

Why is domestic manufacturing of essential medicines important?

Who are the founding leadership and board members of the regional cluster accelerator?

The founding leadership board includes Robby Demeria as the founding chair and Jeff Gallagher as the interim executive director.