Gamma
Biosciences has announced that it acquired South
Dakota Mines’ spinoff
company Nanopareil, LLC.
Nanopareil
was founded on the campus of South Dakota Mines thanks to National Science
Foundation (NSF) funded research. Nanopareil produces revolutionary filters
that have a range of biopharmaceutical applications including significantly
reducing the cost and manufacturing time for lifesaving vaccines and medicines.
The company will keep its current facility in Rapid City.
Gamma
Biosciences is a life
sciences tools platform created by KKR. Gamma's mission is to build a leading player in
next-generation bioprocessing for advanced therapies by acquiring
high-potential businesses with outstanding technology and accelerating their
growth.
“This
might be the first time a product developed by research at a South Dakota university
has seen an acquisition of this magnitude and importance,” says Joseph Wright,
the associate vice president for research and economic development. “This would
be a big deal for any major research university, but for a smaller school like
South Dakota Mines, it’s virtually unprecedented. This demonstrates that Mines
researchers can be world leaders in research and innovation.”
This
story of success begins in 2006, when NSF saw promise in the work of South
Dakota Mines’ professors Todd Menkhaus, Ph.D. and Hao Fong, Ph.D. NSF funded
their research into potential uses for polymer nanofibers that are one thousand
times smaller than human hair. Fong and Menkhaus found that by spraying nanofibers
into multiple layered mats, they could create a new type of filter material
that reduces the costs of purifying vaccines and medications so that they are more
accessible and more economical around the globe.
By
2011, realizing the commercial potential for their new product, Menkhaus and Fong formed a company now
named Nanopareil, LLC
to help carry their innovation into the marketplace. In 2014, NSF awarded them
a Small Business Innovation Research grant, and the company won the South
Dakota Governor’s Giant Vision Awards. In 2017, Nanopareil was named the Buzz
of BIO at the BIO International Convention and took first place in the
Technologies of Tomorrow competition. By 2019, Nanopareil moved into the Ascent
Innovation building,
Rapid City’s high-tech business incubator, and expanded to a second lab in
Sioux Falls to further their product research and development.
Gamma
Biosciences will operate Nanopareil as part of its existing subsidiary, Astrea
Bioseparations. The acquisition assures further success in the marketplace for
the revolutionary products developed by Nanopareil. In a company press release, Gamma Biosciences states that “Gamma plans
to invest substantially in further productization and technology development,
application development and customer support as it establishes Nanopareil as a
key platform within Astrea's growing range of products.” Craig Arnold, CEO of
Nanopareil, LLC, says, "The Astrea team has a strong track record of
bringing innovative new products to the market. With their leadership and
capabilities, Nanopareil will be well positioned to become the next-generation
market leader."
“For
many years, university officials have been touting the potential for research
at Mines to launch innovative ideas to the global marketplace and
simultaneously transform the local economy in the Black Hills with an influx of
high paying tech jobs. It’s a delight to see this success unfold in front of
our eyes today,” says Mines President Jim Rankin.
“Achievements
like this are thanks to the ongoing work of our many partners,” Rankin adds.
“In addition to our government and industry partners, Elevate Rapid City and
Ascent Innovation deserve high praise for fostering economic development
and providing resources for high tech start-ups like Nanopareil.”
Rankin
says the ecosystem of entrepreneurship now thriving in the Black Hills will
continue to yield more success stories with ongoing investment in research and
development at Mines.