Biosynthesis company Antheia announced it has received a conditional commitment of up to $80 million in a long-term loan from the Office of Strategic Capital (OSC) under the U.S. Department of Defense, referred to by the Trump administration as the U.S. Department of War.
The conditional financing, in combination with private capital, is expected to bolster the company’s efforts to onshore production of critical pharmaceutical ingredients vital to public health and national security. Currently, the U.S. relies on foreign countries for an estimated 90 percent of its supply of key starting materials and active pharmaceutical ingredients. This dependence creates American dependence on foreign countries and leaves the country vulnerable to drug shortages caused by public health emergencies, natural disasters, geopolitical tension and supply chain failures, the company said.
“America’s reliance on foreign suppliers for critical pharmaceutical ingredients has created ongoing public health and national security risks,” Dr. Christina Smolke, CEO and co-founder of Antheia, said. “Advanced biomanufacturing offers the U.S. a direct path to securing these supply chains while regaining global leadership in a strategic technology sector. This conditional commitment from OSC marks an important milestone in advancing domestic technology to address our most urgent national priorities.”
Antheia’s biosynthesis platform and domestic manufacturing capabilities have been recognized as priority technologies for building a more resilient public health system. The company has received more than $32 million in non-dilutive federal financing and equity financing from government-affiliated investors among other backing, to establish pharmaceutical supply chain resilience.
“Access to a long-term loan through OSC would give Antheia meaningful flexibility as we build our next phase of commercial growth,” Eric d’Esparbes, CFO of Antheia, said. “Expanding our U.S. manufacturing footprint is central to our commercial strategy. This financing would allow us to onshore these critical supply chains efficiently while delivering on our commitments to customers, partners, and investors.”
The conditional loan commitment requires the company to complete additional steps before financial close, including satisfying various financial, legal, technical, investment, due diligence, and other requirements.