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A Clarence company that makes and tests small batches of prescription drugs before they enter commercial production is getting a $1 million investment from Buffalo venture capital firm Rand Capital Corp. and other investors.

QuaDPharma LLC, which was founded by three former Westwood-Squibb Pharmaceuticals workers, makes small batches of prescription ointments, creams and tablets that researchers or drug companies need before those products begin full-scale commercial production. Typically, the batches are less than 1,000 liters.

Stephen A. Panaro, QuaDPharama’s president and CEO, said the funding from Rand and Glens Falls-based Advantage Capital Partners will allow the Clarence company to increase its marketing efforts in the pharmaceutical industry to find new customers. The funding also should help the company increase its services and its flexibility for small- and mid-scale production, he said.

QuaDPharma was founded by Panaro, Ryan Downey and Leanne Kisicki after Contract Pharmaceuticals Ltd. shut down the former Westwood-Squibb pharmaceuticals products plant late last year.

“The QuaDPharma team saw an opportunity to take their many years of pharmaceutical manufacturing experience and exploit a business opportunity to service this niche marketplace,” said Allen F. Grum, Rand’s president.

Rand invested $500,000 in QuaDPharma in June, half in debt and half in an equity stake in the company. It then pumped another $200,000 into the company in October, with Advantage investing $250,000 and several angel investors contributing a total of $50,000, said Daniel P. Penberthy, Rand’s executive vice president.

email: drobinson@buffnews.com