Alchemia was established in 1995 by three scientists, Professor Peter Andrews, Dr Tracie Ramsdale and Professor Istvan Toth, who joined forces to take on the considerable challenge of unlocking the therapeutic potential of carbohydrates.

In 1998, after two years of successful preliminary research, Alchemia raised its first round of venture capital from the Australian Technology Group (ATG) and established its research laboratories in Brisbane, Australia. Since then, the company has raised $26 million from a number of specialised biotechnology investors including ATG, Medica Holdings, CM Capital, GBS, Biotech Capital, AMWIN, Start-up Australia, Orbit Capital, and Northstate Capital. Alchemia also received strong support from the Australian Federal Government through $7 million from the R&D START Program.

In December 2000, Alchemia entered into a strategic manufacturing alliance with The Dow Chemical Company, the largest global chemical manufacturer, to jointly develop commercial processes for the manufacture of carbohydrates of high therapeutic value. In October 2003, Alchemia formed a partnership with American Pharmaceutical Partners, a US specialty pharmaceutical company, to bring to market the first product of the Alchemia-Dow alliance, a synthetic carbohydrate for the prevention of thrombosis.

Alchemia's intellectual property is protected by patents and patent applications, with the first three of these granted in both the USA and Australia. The company is committed to the next phase of its development, which will focus on the commercialisation of Alchemia's first product, Synthetic Hepari (fondaparinux). Alchemia is also focused on the advancement of a number of its other drug leads, to a point where they are ready to be partnered with the major industry players required to take drug candidates to market.