Camarillo-based PBS Biotech, a single-use bioreactor manufacturer, secured $10 million in a funding round with BroadOak Capital Partners.
PBS Biotech will utilize the funds to industrialize and expand its portfolio of bioreactor systems as well as contract process development services. The company uses proprietary technology to achieve particular mixing properties and environmental conditions for cell therapy products. The method has proven superior to traditional “stirred-tank” bioreactors, according to the company.
Chief Executive Brian Lee said that following the funding round, the company will work toward scaling up its engineering quality, manufacturing and supply chain management.
“We continue to develop the supporting equipment that can work along with our existing bioreactor product. That’s the reason why we are expanding our product portfolio,” Lee said.
He added that the company provides process development services to its customers to aid them in adapting PBS’s bioreactor technology, scaling up manufacturing processes and expediting product development.
The systems are used by more than 200 customers, including development groups, large-scale manufacturers and small-scale research companies. The bioreactor systems are ideal for stem cell manufacturing and certain types of therapy manufacturing.
“The return on investment comes when we deliver this service work to the customers. We can generate more revenue and we can hire more people, which can increase overall income revenue in addition to the sales of the equipment,” Lee said.
The biotech company is in a position to capitalize on its funding with a new facility it moved to last year. The facility is 64,000 square feet, a significant step up from the 10,000 square foot facility it vacated.
Lee said that several different types of potential investors have approached PBS, but what made BroadOak stand out was its flexibility and knowledge in the field of cell therapy. The challenge with larger firms, Lee said, is that the terms and conditions they want to operate on tend to be aggressive and rigid.
“(With BroadOak), I realized they really understand the challenges of what small startup companies are facing,” Lee said. “They’re willing to meet our needs and (are) flexible in investment terms.”
He added that BroadOak’s understanding of the time needed to achieve FDA approval, the challenges faced by PBS and the benefit of PBS’s tech made for a smooth investment decision.
BroadOak Director Bryan Poltilove said the advisory and investment firm has focused on the cell and gene therapy space for the last several years, making about seven investments into entities within the sector.
“We see a lot of potential there in terms of the promise of cell therapy and gene therapy, and the enabling technology that make that possible in terms of development and commercial manufacturing,” Poltilove said in a statement.
The $10 million investment into PBS is one of BroadOak’s highest, as it only has a couple of investments that have met or exceeded the amount.