Pharmaceutical innovation partner CatSci has secured investment from a European growth buyout investor.
The Cardiff-headquartered firm received the investment from Keensight Capital whose expertise in technology and healthcare will help the firm continue to accelerate growth and expansion of its workforce, laboratories, equipment and offerings.
The company would not disclose the value of the deal.
The funding follows a £4.5m investment CatSci received in March to purchase new equipment and extend its 13,000 sq ft laboratories and a £3m investment in 2021.
Formed in December 2010 from a spin-out of AstraZeneca’s Catalyst Screening Facility, CatSci is operated by current co-owners Dr. Ross Burn, chief executive officer and chief operating officer, Dr. Simon Tyler.
The firm develops economically and environmentally sustainable drug manufacturing processes that enable its global pharmaceutical customers to create affordable small molecule therapeutics to address critical public health challenges, including antimicrobial resistance, cancer, and mental health.
The company, which has six operational laboratories, employs almost 100 staff and achieved a turnover of more than £5.8m last year. It has a 30-40% per annum historic growth trajectory.
Dr. Burn said: "Keensight’s team has extensive experience in the CRDMO (Contract Research, Development and Manufacturing) space across both small and large molecules, thus, making it the ideal team to partner with to accelerate our growth."
He added: "Coupled to their impressive international network and expertise in delivering operational support to fast-growing companies, the support of the Keensight team will be key for the success of our expansion strategy going forward. We are very excited about this new partnership and can’t wait to write the future chapters of our success story together."
James Mitchell, partner at Keensight Capital, said: "We are delighted that Ross and Simon have chosen Keensight to support CatSci in its next stage of growth. We believe that CatSci has exceptionally strong potential in a large and continuously developing market which is expected to reach c.$75bn by 2030."
He added: "Their unique positioning and strong expertise in small molecule R&D as well as their renowned high-quality scientific services and workforce make them a critical player in the CRO ecosystem. Keensight is proud to partner CatSci’s top class management team in their ambitions."
Bristol-based corporate finance advisory firm Shaw & Co advised on the deal.
Chief executive of Shaw & Co, Jim Shaw said: "There has been an extraordinary amount of interest in CatSci and its offering thanks to the company’s enviable prospects for future growth. We have been able to add a significant amount of value for the client by running a competitive marketing process that has found CatSci an investment partner that will undoubtedly provide them with a strong foundation for further expansion."
He added: "The deal demonstrates that there are certainly a number of viable financing options out there for any SME looking to fund their company’s future development and expansion.”
