With Section 232 Tariffs Reshaping Biotech, Valion Bio's Velocity Bioworks Capitalizes on Domestic CDMO Surge
Key Highlights
- ➤Section 232 tariffs reach up to 100% on certain imported pharmaceuticals and ingredients
- ➤Velocity Bioworks offers U.S. GMP drug-substance manufacturing up to 200 liters
- ➤Velocity provides process development, analytical services, and mammalian manufacturing capabilities
- ➤Valion positions Velocity to serve internal Entolimod programs and external biotechnology partners
Expert Statements
Dean Zikria, Interim CEO of Valion Bio
“Biotechnology companies may benefit from establishing U.S.-based manufacturing early in development as part of a longer-term domestic supply-chain strategy.”
Dean Zikria, Interim CEO of Valion Bio
“Doing so can help avoid a more complex process transfer closer to launch. Velocity Bioworks is designed to provide clinical sponsors with access to process development, analytical services, and GMP drug substance manufacturing for early clinical development at its integrated San Antonio campus. We welcome discussions with potential partners about how Velocity can support their development and manufacturing needs.”
Dean Zikria, Interim CEO of Valion Bio
“As a biopharmaceutical company developing our own biologic drug candidates, including Entolimod, Valion understands the importance of aligning domestic manufacturing capabilities with development objectives,”
Dean Zikria, Interim CEO of Valion Bio
“Velocity Bioworks reflects that commitment, with capabilities designed to support both our internal programs and external partners.”
SAN ANTONIO, TX / ACCESS Newswire / October 14, 2026 / Valion Bio, Inc. (NASDAQ:VBIO) ("Valion" or the "Company"), a clinical-stage biopharmaceutical company developing biologics that activate innate immune pathways for cytoprotection and immune modulation, today highlighted the capabilities of its wholly owned contract development and manufacturing organization ("CDMO"), Velocity Bioworks. Velocity Bioworks ("Velocity") is part of Valion's own domestic biologics supply chain, supporting the Company's development strategy for its lead candidate, Entolimod, which is being developed as a potential medical countermeasure for Acute Radiation Syndrome.
Velocity Bioworks can support biotechnology companies evaluating U.S.-based manufacturing for early-phase biologics programs. The announcement comes amid increased industry focus on domestic pharmaceutical manufacturing following implementation of the new Section 232 pharmaceutical tariff framework.(1) It imposes tariffs of up to 100% on certain imported patented pharmaceuticals and associated pharmaceutical ingredients, with lower rates or exemptions based on product, origin, and other applicable criteria. The framework took effect for most companies on September 29, 2026.(2)
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