Charlottetown drug manufacturer BioVectra Inc. said Tuesday it had received a $3 million funding from the Atlantic Canada Opportunities Agency’s Atlantic Innovation Fund, which will help to finance a $5 million expansion project for the company.

The announcement was one of three AIF funding announcements that Prime Minister Stephen Harper made Tuesday during a visit to P.E.I. The others were $2.9 million for Delivra Inc. to support its research on topical creams to relieve pain and $1.9 million for Island Abbey Foods Ltd., the maker of the Honibe line of products, to expand a line of honey-based products for therapeutic purposes.

The BioVectra announcement is significant because it’s the first major move by the company since it sold out to Questcor Pharmaceuticals of Anaheim, Calif., for up to $100 million in cash and deferred payments in January.  The fact that the new owners are investing $2 million (as well as the AIF funding) in the new project indicates their commitment to grow the business in P.E.I.

BioVectra plans to develop products using sustained-release technology in partnership with a multi-national drug company.  “This project will be instrumental in supporting an entirely new capability in pharmaceutical manufacturing to BioVectra which can be applied to both future contract manufacturing, and drug development investments,” said the company in a statement.

It added it will hire five additional people to carry out the work.

The federal government said the announcement was part of a wider renewal of the Atlantic Innovation Fund for 2012-13, in which $39.9 million will be allotted to 17 projects across Atlantic Canada.

The government plans to announce the other 14 projects in the coming weeks, with $11.4 million for New Brunswick, $11.3 million for Nova Scotia and $9.4 million for Newfoundland and Labrador.

Since 2006, companies and institutions throughout Atlantic Canada have received $503.8 million for 216 projects from the Atlantic Innovation Fund.