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 lack of active pharmaceutical ingredient (API) infrastructure in the United States and expand domestic production capabilities.

Strategic Investment to Enhance US Drug Manufacturing

The investment, which is expected to eventually reach "nine figures," 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 US. This strategic move comes at a time when the pharmaceutical industry is increasingly focused on bringing drug manufacturing back to the United States.

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

Wilmington PharmaTech: A Hidden Giant in API Development

Founded in 2003, Wilmington PharmaTech has contributed to the development of multiple blockbuster drugs over the years. The company offers a wide range of services, from early discovery and clinical development through to commercial supply. WPT 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 described the company's evolution, saying, "We started 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."

Expanding Capabilities in Complex API Manufacturing

Kent Payne, Ph.D., Operating Partner at Curewell, highlighted the specific niche that WPT fills in the market. "There are some larger players in the US still—although probably many more in other countries—in the small molecule API space," Payne explained. "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."

The investment in WPT is part of Curewell Capital's broader strategy to acquire leading US healthcare businesses across various sectors, including pharmaceutical services. This move comes shortly after Curewell closed its inaugural fund at $535 million, demonstrating the firm's commitment to expanding its presence in the healthcare industry.