Valion Bio, Inc. (NASDAQ: VBIO) announced on October 14, 2026, that its wholly owned subsidiary, Velocity Bioworks, is capitalizing on a surge in interest for domestic Contract Development and Manufacturing Organization (CDMO) services. The announcement comes in response to the implementation of the new Section 232 pharmaceutical tariff framework, which took effect for most companies on September 29, 2026.
The Section 232 framework imposes tariffs of up to 100% on certain imported patented pharmaceuticals and associated ingredients, with lower rates or exemptions based on product and origin. Valion’s Interim CEO, Dean Zikria, stated that biotechnology companies may benefit from establishing U.S.-based manufacturing early in development to avoid complex process transfers closer to launch.
Velocity Bioworks operates an integrated San Antonio campus offering process development, analytical services, and GMP drug substance manufacturing for early-phase clinical programs. The facility’s microbial manufacturing line supports GMP drug substance production at scales up to 200 liters. Additionally, Velocity maintains GMP mammalian manufacturing capabilities to support biologics through early clinical development.
The San Antonio site provides access to San Antonio International Airport and regional transportation infrastructure. Velocity Bioworks is designed to support Valion’s internal pipeline, including its lead candidate Entolimod, which is being developed as a potential medical countermeasure for Acute Radiation Syndrome. Entolimod has received Fast Track and Orphan Drug designations from the FDA.
