The company specialises in the production of biologic products, and is keen to carve out a slice of the biopharmaceutical manufacturing market, valued at more than $50 billion a year in a recent research report by CIBC World Markets. Outsourcing accounts for around 25 per cent of that total, according to the report.

The company said it would use the funds for licensing manufacturing technology, acquiring laboratory and manufacturing equipment and hiring additional staff. And the company has hit the ground running, with two companies already signed up as clients.

Parrish Galliher, president and CEO of the start-up, explained that the premise for the company is speed. "We established Xcellerex recognising that speed to clinic and market is critical and that a growing number of pharmaceutical companies can no longer afford manufacturing as a core competency," he said.

The business is based on two platforms, a pharmaceutical development service called BioMax and FlexMax, a modular manufacturing process designed to be quickly modified to handle new processes or process changes.

Xcellerex claims that, using BioMax, drug development timelines and costs are reduced with the added pay-off of improved manufacturing quality and more robust process data. Meanwhile, in addition to its flexibility, FlexMax improves product quality while reducing capital costs by 50 per cent, said the firm.

The company offers cell line development services, GMP cell banking, management of cell line testing, development of purification through formulation and assistance with preparation of documentation for regulatory filings.