RXQ Compounding, backed by Ohio Innovation Fund, has added $3.6m in series A funding from Advantage Capital to its coffers.
RXQ Compounding, a US-based medical supplies provider backed by universities-backed venture capital firm Ohio Innovation Fund, received almost $3.6m in funding yesterday from VC firm Advantage Capital.
The figure included $1m invested under the government-run Ohio Rural Business Growth tax credit scheme, and an unspecified sum covered by the New Markets Tax Credit program, which channels investment into disadvantaged communities.
Founded in 2015, RXQ produces more than 160 pharmaceutical products that include injectables, veterinary medications, ophthalmic solutions and orthopaedic steroids, as well as custom lines for hospitals.
The manufacturing process is marketed as fully meeting the criteria of US healthcare regulator Food and Drug Administration. RXQ currently ships to 38 US states and Washington DC.
The company hopes to exploit what it regards as a growing tendency for hospitals to outsource drug compounding. It claims 75% of hospitals opted to outsource in 2017, compared to 20% in 2002.
The investment will go towards an expansion of RXQ’s new manufacturing plant in Athens County in rural Ohio, which replaced its previous facility at the Ohio Innovation Center. The money will also support research and development and drive the creation of up to 100 jobs.
RXQ Compounding previously raised an undisclosed sum in a July 2018 series A round led by Ohio Innovation Fund, backed by Ohio University, Ohio State University and Kent State University.
