Tocopheryl phosphates are an integral part of many of Phosphagenics' pharmaceutical products, including APA-01, for the treatment of atherosclerosis in combination with a statin drug, and TPM-01/Morphine, for the sustrained delivery of morphine through the skin.
The Australian company already has a facility in Ontario that is operated under a contract manufacturing arrangement, as well as a pilot plant used for the initial development of its proprietary phosphorylation process.
The new plant in Melbourne is expected to be operational before this year is out, and will have an annual capacity of 100 tonnes of high purity tocopheryl phosphates with an estimated value of $A25m (€14.7m).
Such capacity is above and beyond current demand, but the company is clearly banking on a need to step up production in the future as more agreements fall into place, and new markets for its products open up.
"The new plant will demonstrate our capability to manufacture on a commercial scale for current and future licensing partners," said COO Ian Pattison.
"On completion it will also allow us to step up manufacturing output as the markets for Phosphagenics' products develop."
The new facility will be a $A500,000 scaled-up version of the pilot plant used successfully in the initial development of Phosphagenics' proprietary phosphorylation process.
This technology - the addition of a phosphate group to the chemical structure of molecules - has been found to improve the absorption of drugs into the body and biological activity.
In the drug delivery field, the company has a transdermal delivery system, TPM-01, which delivers drugs through the skin into the bloodstream, and an oral drug delivery system, POH-05, that enhances the oral absorption of drugs from the gut into the bloodstream.
In November 2005, Phosphagenics signed a joint development programme with drug delivery company Alza Corporation under which Alza will fund investigations into delivery of compounds using TPM-01.
Meanwhile, in phosphorylated active pharmaceutical ingredients, apart from APA-01, Phosphagenics' pipeline features APA-02 for atherosclerosis and GTP-0805, both in early development.