Founded in 2014 by local pharmacist and businessman Ed Zatta, who is President of the company, RXQ Compounding has grown from its beginning in a 500 square foot office where Zatta was the lone employee to the 40,000 square foot facility currently under construction.
RXQ Compounding, LLC, is an FDA-approved 503B outsourcing facility, which manufactures sterile and non-sterile medications including products that are on the FDA Short List. RXQ Compounding provides these medications to physician offices and hospitals across the United States in various sized vials and syringes. Zatta explained that the company takes raw material and processes it, as well as taking large amounts of materials and breaking it down into smaller units for use in hospitals.
Zatta stated that the company currently has 49 full-time equivalent employees as it operates out of the Ohio University Innovation Center, with that number expected to be around 100 in the next six months as the company prepares to move into its new facility.
The company employs individuals in a variety of roles, including, packing and shipping, technicians, sales, and pharmacists. Technicians are able to be trained by the company for their positions. Currently their are three pharmacists, with three more expected to be hired in the coming months.
RXQ Compounding handles the process from start to finish, taking the product from raw material to finished product, selling the product, and shipping it to the buyers.
At its current location, RXQ Compounding ships to 38 states, with the plan to increase to all states once the move is made to the new facility.
The new facility will allow for an increase in the volume of current products, as well as the expansion into new product lines.
Following his own investment in 2014, Zatta saw financial backing from a few friends, with recent multi-million dollar investments made in the company from the Ohio Innovation Fund and Advantage Capital.
In the past year, Zatta stated that they have raised a little over $9.5 million, which is all being invested into the facility in Albany. While a 40,000 square foot facility is currently being constructed, there is room for future expansion with an additional nine acres of property at the site.
In a news release, Advantage Capital recently announced its $3.6 million investment in the company.
The investment, including $1 million in equity under the Ohio Rural Business Growth (RBG) program, will help RXQ expand its new Albany manufacturing facility, increase research and development, and create as many as 100 jobs, stated the news release.
According to Advantage Capital, compounding facilities are one of the fastest growing areas in the healthcare industry, due to the rise of chronic diseases and increasing need from patients that cannot be treated with mass-produced FDA-approved medications. In 2002, less than 20 percent of hospitals elected to outsource any compounding needs. By 2017, 75 percent of hospitals were outsourcing these needs, and demand continues to grow.
“We are excited to expand our portfolio in Ohio and help move the state’s economy forward through innovation, business expansion and job creation. With RXQ, we utilized our full toolkit of investment capabilities to support the company’s growth plans, and we applaud its success and commitment to creating local jobs,” said Chris Harris, senior vice president at Advantage Capital.
Along with the Ohio RBG program, the investment was also made in connection with the federal New Markets Tax Credit program. Both were designed to increase the flow of capital into disadvantaged communities, growing businesses and creating jobs and opportunity in areas where access to capital and private investment is hard to find.
“By partnering with state and federal economic development programs, we’re able to provide both cost-effective debt capital and flexible, long-term equity capital to meet the unique needs of companies like RXQ. We are excited to replicate this investment model in support of other rural businesses across Ohio that need growth capital,” said Harris.
In addition to RXQ Compounding, Zatta has four pharmacies including Swisher and Lohse in Pomeroy, Ravenswood Drug, The Drugstore at O’Bleness and The Drugstore at OU.
For more information on RXQ Compounding visit rxqcompounding.com.
A portion of the information for this article provided by Advantage Capital.
08-29-2018 – Check us out on www.fortune.com at http://fortune.com/2018/08/27/term-sheet-monday-august-27/: “RXQ Compounding LLC, an Athens, Ohio-based outsourcing facility that produces medical formularies and medications, raised ~$3.6 million in funding Advantage Capital.”
08-23-2018 – Advantage Capital Invests in Ohio-Based RXQ Compounding, LLC – RXQ looks to create as many as 100 jobs in rural Ohio, highlighting significant economic impact of the Ohio Rural Business Growth Program.
Advantage Capital today announced a nearly $3.6 million investment in RXQ Compounding, LLC, an FDA-approved outsourcing facility that manufactures medical formularies and medications used in physician offices and hospitals across the country, located in Athens County, one of Ohio’s hardest hit rural areas.
The investment, including $1 million in equity under the Ohio Rural Business Growth (RBG) program, will help RXQ expand its new Albany manufacturing facility, increase research and development, and create as many as 100 jobs. In an area where more than one in every four people is unemployed, job creation of this magnitude shows the significant impact the RBG program will have on Ohio’s rural communities. Click here to view the whole article: http://www.investorpoint.com/news/MARKCOMM/7553952230491738/?utm_source=The+Brief+list&utm_campaign=c9b956a81a-EMAIL_CAMPAIGN_2018_08_24_09_58&utm_medium=email&utm_term=0_b3777c56e4-c9b956a81a-42256717.
07-23-2018 – Ohio Innovation Fund leads $7M round in Athens drugmaker – A pharmaceutical maker addressing critical drug shortages will fledge from an Ohio University incubator and add as many as 100 jobs in rural Athens County after closing a $7 million funding round. Click here for the full article: https://www.bizjournals.com/columbus/news/2018/07/23/ohio-innovation-fund-leads-7m-round-in-athens.html.
07-23-2018 – RXQ Compounding Secures Series A Funding Led by Ohio Innovation Fund – RXQ Compounding, LLC, a manufacturer of sterile and non-sterile medications licensed to ship to 38 states and Washington, D.C., today announced it has secured its Series A funding, led by Ohio Innovation Fund (OIF). RXQ will use the funds to open a new state-of-the-art FDA 503B outsourcing facility for pharmacy compounding, employing hundreds in the Appalachian area of Southeast Ohio.
“This investment will help RXQ open a new world-class compounding facility, boosting our ability to further serve our customers and expand our line of products,” said Ed Zatta, Chief Executive Officer of RXQ Compounding. “We’re excited to be supported by OIF, which has a proven track record in the region, including multiple IPOs and major acquisitions in both the technology and medical technology industries.” Click here to view the full article: https://globenewswire.com/news-release/2018/07/23/1540640/0/en/RXQ-Compounding-Secures-Series-A-Funding-Led-by-Ohio-Innovation-Fund.html.
Take a moment to listen to this Spectrum by WOUB Public Media podcast featuring Edward Zatta, Founder and President of RXQ Compounding, LLC. This podcast is brought to you by the Scripp’s College of Communication at Ohio University and discusses the subject, “How Safe are Your Compounded Drugs? Safer Since FDA Involvement.” Click here to listen now: http://apple.co/2q7K050.
Aug 27, 2017-Athens Business Poised for Expansion, Job Creation-By Steve Robb, Staff Journalist, The Athens Messenger.
A business in the Ohio University Innovation Center is planning a major expansion that would move the company to its own facility and create about 75 additional jobs.
RXQ Compounding, a company that makes sterile drugs for hospitals and physicians, is planning a $3.5-$4 million expansion, according to founder and President Edward Zatta.
“We’re getting ready to purchase a building from OhioHealth out in Albany,” Zatta explained, with additional space to be constructed. “We’re going to have about a 35,000-square-foot manufacturing facility there.”
The building in Albany, located on Blizzard Lane, was originally built as a physician’s office for OhioHealth and was later leased to Holzer Health System. Also, OhioHealth had some administrative and billing personnel there until they were moved to Athens, said Mark Seckinger, president of OhioHealth O’Bleness Hospital. He said closing of the sale should take place soon, although he declined to confirm that RXQ was the potential buyer.
Plans call for RXQ Compounding to construct a new compounding building and a shipping/receiving building. Even with that construction, Zatta said, there will be land remaining. Zatta explained that the plan is to first move RXQ’s administrative offices into the purchased building, with the new manufacturing space ready for use the second quarter of 2018. He said the company currently uses two clean rooms with three separate work areas at the Innovation Center, and the expansion is slated to have 14 work areas.
Zatta said the company has 22 employees, and that number is expected to increase to around 100 over a three-year period.
He said he hopes to get confirmation in the next few days that JobsOhio will help finance the expansion. “Our goal here is to keep generating jobs and keep growing, and try to find other opportunities to do that,” Zatta said. The company has been manufacturing in the Innovation Center for over two years, but that only started after working through a lengthy regulatory process, according to Zatta. “It’s a very regulatory-intensive type of industry,” he explained.
Zatta, who owns four pharmacies that include two in Athens at the Castrop Center and Ohio University, said the idea for RXQ Compounding grew out of an Ohio Pharmacists Association meeting in 2014 at which an attorney explained how new FDA regulations would impact compounding done by pharmacies. The new rules allowed for creation of compounding outsourcing facilities. Zatta said he approached the attorney for help in creating one, which led to formation of RXQ Compounding.
When asked for an example of what RXQ produces, Zatta mentioned that there is a nationwide shortage of injectable sodium bicarbonate, which is baking soda.
“We make sodium bicarb for hospitals to use. This is a drug that doesn’t sound like this great wonder drug, but it’s on every crash cart in every hospital if you need it…,” Zatta said, adding that there are other medical uses for it. Currently, RXQ is licensed in 33 states to sell its projects, according to Zatta.
There have been preliminary discussions about the Athens County Port Authority possibly issuing tax-exemption bonds for RXQ expansion, although Zatta said it would be for a future expansion beyond the one currently planned. Sara Marrs-Maxfield, secretary for the Port Authority and executive director of the Athens County Economic Development Council, said the Port Authority board hasn’t heard details of what RXQ would do with the bond financing if it is issued. She said Zatta will likely make a presentation to the board next month.
Zatta said the company plans to stay in Athens County long term.
“We’re actually trying to create jobs, we’re not just here having a business that’s going to go off to some investment banker and be transferred away from here,” he said. “RXQ is going to be here in the foreseeable future … We’re going to be in the Athens area in perpetuity.”
#RXQ #The503BDifference #503BOutsourcingFacility