Andy

Richmond, VA, July 22, 2025 (GLOBE NEWSWIRE) — Phlow Corp., a leading American pharmaceutical contract development and manufacturing organization (CDMO), today announced the successful close of its Series C financing round at an increased valuation from previous funding. The $37 million raise supports the Company’s mission of helping brilliant minds bring medicines to life through advanced development and manufacturing in America. The growing Company’s Series C round was led by Align Private Capital LLC, a woman-owned investment firm which manages private family office direct investment vehicles, and was supported by additional new and follow-on investors.

The funds raised will accelerate Phlow’s expansion across its U.S.-based development, manufacturing, and digital infrastructure, with a focus on scaling technology-driven innovation, including AI-powered systems and next-generation pharmaceutical manufacturing technologies. This growth will strengthen domestic production of Key Starting Materials (KSMs) and Active Pharmaceutical Ingredients (APIs), helping restore America’s pharmaceutical sovereignty. To date, Phlow has raised over $93 million in private capital, alongside more than $600 million in awarded government contracts.

“Raising funds in today’s capital market environment remains very challenging. This investment demonstrates the confidence that both new and existing investors have in our vision” said Dave Ryan, Chief Financial Officer of Phlow, “Together, with our bold and purpose-driven partners, these funds will permit us to continue to revolutionize the science behind life-changing medicines and improve the health of our nation, a focus over the last five years that has led to significant growth for our business and value creation for our investors. We are excited to work with the Align team to continue executing our vision.”

7/17/2025 – Gwendolyn Wu – Even before HSBC’s report, there were signs of a biotech funding slowdown.

Research the investment bank Jefferies published in May and again in June found a substantial pullback in financing in public companies. Private rounds tracked by BioPharma Dive have gotten larger, but are fewer in number, too, as venture firms appear to be favoring surer bets. Initial public offerings have largely been on pause since the middle of February.

HSBC’s findings detail the fallout for drug startups more specifically. A combination of worries over pharmaceutical tariffs, research funding cuts and leadership changes at public health agencies drove a slump that led to startups’ worst quarter in terms of seed or Series A funding rounds since 2023, according to Jonathan Norris, a managing director at HSBC Innovation Banking.

The uncertainty has made investors more conservative, prompting them to shy away from smaller deals and band together for larger fundings, such as “megarounds” of $100 million or more. These investments allow companies to “get almost three traditional rounds” through one financing, Norris said.

Yet even megarounds dipped from 21 over the first three months to 16 between April and June. And along with that decline, the so-called crossover investors that often support the rounds preceding an IPO retreated from biotech venture deals. Only two of the top eight rounds included new crossover investors, a decline from each of the last two years.

“Many crossover investors are at their own proverbial crossroads, with too many private investments that have yet to IPO and many public companies struggling with low market caps,” Norris wrote in the report.

Their disappearance is, in part, due to the poor performance of companies that went public in 2024. The median stock price decline for last year’s class was 70% at the end of the first half, according to HSBC.

One bright spot is a steadier pace of M&A deals for private companies, which give venture capital firms another chance at investment returns. Last year, 17 drug startups were acquired — the highest total since 2020 — and buyouts are proceeding at a similar pace in 2025. Those deals prove “you can still get to an exit with early data in the right space,” Norris said.

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Planning is well underway for BioHealth Capital Region Week 2025, and hundreds of attendees have already registered for the Forum taking place September 23–25 at US Pharmacopeia in Rockville, Maryland. Now in its 11th year, this free, three-day event brings together the people shaping the future of biohealth, including industry leaders, entrepreneurs, investors, government officials, and academic researchers, for insight, collaboration, and deal-making.

With this year’s theme, “Where Human and Artificial Intelligence Converge in the BioHealth Industry,” the program offers a timely look at how new technologies are transforming the entire innovation pipeline—from early-stage research through commercialization and patient impact.

The week opens with the BioHealth Capital Region Forum on September 23 and 24. This two-day event will feature keynote speakers, panels, and networking focused on industry trends, workforce strategies, and the impact of AI on research, development, and clinical decision-making. Whether you’re looking for policy updates, partnering opportunities, or inspiration, the Forum delivers valuable insight and access. Register today at https://bit.ly/BHCRWeek2025.

On September 24, the Crab Trap pitch competition returns for its 10th year, providing a platform for emerging companies to present their innovations to a panel of investors and strategic leaders. This year’s winner will receive a prize package, including a cash award (to be announced soon), $10,000 in CRO services from Noble Life Sciences and Accelevir, and a $25,000 IT and cybersecurity services credit from InfoPathways. Applications are open through August 29 at https://bit.ly/CrabTrap2025.

The week concludes with the BioHealth Capital Region Investment Conference on September 25. Designed to drive investor-startup engagement, the event features curated one-on-one meetings, startup quick-pitches, and opportunities to connect with some of the most promising companies in the region. It’s the best way to meet VCs, angels, and strategic partners seeking the next big thing in biohealth. Register at https://bit.ly/BHCRIC2025.

Thanks to the support of generous sponsors, all events are free to attend, but space is limited, and demand is growing. We are grateful to the organizations that have already committed to supporting this year’s programming and encourage others to consider joining them. Sponsorship includes visibility across all events and access to exclusive networking, including the VIP Leadership Dinner. For details, reach out to Rich Bendis at rbendis@biohealthinnovation.org or Andy Eckert at aeckert@biohealthinnovation.org.

Whether you’re an investor, entrepreneur, researcher, or policy leader, BioHealth Capital Region Week is your opportunity to engage with the people and ideas driving the future of healthcare innovation. We hope to see you there.