See original news release here
CHARLOTTETOWN – November 04, 2019 – Today, H.I.G. Capital, a leading global private equity investment firm with over $34 billion of equity capital under management, announced that one of its affiliates has completed the acquisition of BioVectra Inc., a leading contract development and manufacturing organization (CDMO) of active pharmaceutical ingredients and intermediates, from Mallinckrodt Pharmaceuticals.
“We are excited to enter into this new chapter with H.I.G. Capital.” said Oliver Technow, Chief Executive Officer of BioVectra. “We have been fortunate over the last few years with the support of Mallinckrodt Pharmaceuticals to execute on our strategic growth plan. We look ahead to continuing on this path with H.I.G. Capital, an experienced investor in the CDMO space. H.I.G. is committed to our strategy and management team, and we look forward to continuing to pursue the company’s various growth initiatives
“We are very pleased to partner with Oliver Technow as well as his exceptional leadership team and dedicated employees,” said Mike Gallagher, Managing Director at H.I.G. Capital. “Oliver and his team have expanded BioVectra’s presence by pursuing strategic capital expenditure programs to significantly expand capacity. We believe the company is well positioned to capitalize on the growing demand for its broad set of technical capabilities and exceptional quality track record.”
Entering their 50th year, BioVectra’s highly-skilled employees and recent expansions to support active pharmaceutical ingredient production capacity in Charlottetown, Prince Edward Island and biologics capabilities in Windsor, Nova Scotia, will be major drivers of the company’s growth plans. “Make no mistake,” said Technow. “This fantastic opportunity with H.I.G. Capital is a direct reflection of the dedicated team we have and the incredibly supportive environment we operate in. Everyone at BioVectra looks forward to continued growth and success right here in Atlantic Canada!”
BioVectra is a CDMO that serves global pharmaceutical and biotech companies with full-service cGMP
outsourcing solutions for intermediates and active pharmaceutical ingredients (APIs). An innovative and
reliable service partner with a strong regulatory history, BioVectra specializing in:
• cGMP microbial fermentation
• Complex chemistry – high potency APIs
• Formulation development
For more information about BioVectra, please visit www.biovectra.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over $34 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and
operationally focused/ value-added approach:
1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
Communications and Marketing Manager
902-566-9116 ext. 6376
Read original Entrevestor article here
One of the strongest developments in the Atlantic Canadian startup community in recent years is the development of the life sciences segment – both the biotech companies and the ecosystem that supports them.
Five years ago, these companies made up 16 percent of the companies we listed in our Entrevestor databank, but that proportion rose to 21 percent last year. And our research shows that the number of people working at Atlantic Canadian-owned life sciences companies rose 25 percent in 2018 to almost 1,300, while the companies that provided us with sales data showed a 95 percent increase in revenues. There were 24 new life sciences companies in 2018 (up from six in 2014), so that one-fifth of the region’s biotech companies were launched in 2018.
Finding a theme in this sector is difficult because there are several initiatives taking place across the region. On Prince Edward Island, the PEI BioAlliance continues to build up its community with a special emphasis on pet health and natural products. The BioAlliance’s Emergence incubator is growing into a more regional initiative.
In Nova Scotia, BioNova last year produced its BioFuture 2030 report, which sets out a roadmap for doubling the sector or better. It plans to triple employment to 4,100 jobs and quadruple revenues to $1.1 billion. It is also calling for new ecosystem initiatives, such as an acceerator to teach sales to life sciences companies.
Newfoundland and Labrador is beginning to launch more life sciences companies as the Bounce Health Innovation initiative is nurturing partnerships between innovators and the medical community. BioNB is growing and becoming more active in developing a cannabis R&D cluster in New Brunswick.
These provincial groups are working together more than ever before, as the life sciences group of the Atlantic Growth Strategy is bringing them together to work on common goals. BioNB, BioNova, the Newfoundland & Labrador Association of Technology Industries and the PEI BioAlliance are all working together in the Atlantic Canada Bio-Industries Alliance. This group brought together 20 companies and organizations in early 2019 to attend the 2019 BIO International Convention and Trade Show in Philadelphia.
As well as the ecosystem changes, there are some great companies pushing forward. Halifax-based ABK Biomedical raised a US$30 million (C$40 million) venture capital round this spring, a record for the region. Drug discovery company Appili Therapeutics listed on the TSX Venture exchange in June. Adaptiiv, which 3D prints boluses for cancer treatment, and Densitas, whose software measures breast density during mammograms, are both growing revenues. Moncton-based Picomole is developing its cancer detection device and has made inroads in the Boston area. Mara Renewables is producing its Omega-3 food supplements from algae and now employs 60 people. Publicly listed IMV of Dartmouth will soon announce the results of clinical trials for its flagship drug candidate, DPX-Survivac.
Funding of life sciences companies rose to a new plateau of more than $20 million per year in 2017 and 2018. The US$30 million funding round announced by ABK Biomedical will ensure that life sciences funding will set a record in 2019.
See original Entrevestor article here
While applauding recent investment tax credit reforms in Nova Scotia, the province’s life sciences association wants further improvements, including offering the credits to investors outside the region.
BioNova, the group that supports the development of health, life sciences and biotech companies in Nova Scotia, has teamed up with the consulting group Grant Thornton and the law firm Cox & Palmer to produce a new paper on Innovation Equity Tax Credits, or IETCs. They released the report last week at the annual BioPort conference in Halifax.
Most of the report’s 13 recommendations are technical, but No. 6 strikes at the heart of an ongoing debate in the startup community about investment tax credits. These credits are now only available to Nova Scotians, but BioNova and its co-authors want them offered to investors living elsewhere to increase the money going into high-growth companies.
“Limiting it to Nova Scotia restricts investors and, most importantly, limits access to significant pools of capital,” says the report. “Regardless of the method, expanding the program as suggested in this paper to investors outside of Nova Scotia would likely be the biggest benefit to Nova Scotia companies in accessing funds.”
Most provinces in Canada and states in the U.S. offer a tax credit to investors in startups and other high-growth businesses as a means of encouraging investment in these businesses. Canadian provincial governments offer them only to residents living in (or businesses based in) their own provinces.
There’s been a long-standing push in Atlantic Canada for the four East Coast provinces to open up their tax credits to one another’s residents, or to offer them to investors anywhere in the world.
The Nova Scotia government in January enhanced its program so its new IETC applies to investments in approved companies of up to $250,000, up from $50,000. Investors can receive a credit equal to 35 percent of their qualifying investment, or 45 percent in the priority sectors of oceans technology and life sciences.
But the credit is still offered only to Nova Scotians. BioNova is recommending the province consider measures in place in such states as Alabama or Arkansas, which offer tax credits to external investors. Some states allow investors to transfer their credits, so an external investor can sell a tax credit to a local taxpayer. Others will offer a tax credit directly to external investors. Minnesota, for example, gives cheques to people outside the state making approved investments in companies based in the state.
The BioNova report said the Nova Scotia government could examine other means to encourage inward investment into the province’s startups, such as a payment to the target company rather than the investor. For example, if an investor in Boston invests $85,000 in a Nova Scotian company, the provincial government could provide the company with a further $15,000 to bring the total amount of capital raised to $100,000.
Peter Hickey, a BioNova board member and the CEO of biotech company Adaptiiv, said the recent changes to the province’s tax credits have already helped innovation-driven companies in the province.
“We were encouraged to see local investors benefit from the new changes,” he said in the report. “We truly believe that these are the types of significant improvements that are needed to ensure the success of technology-based businesses like ours, so we look forward to this trend continuing.”
Motryx, the Halifax company whose technology improves the transportation of blood samples, has won the $55,000 BioInnovation Challenge, Atlantic Canada’s top pitching competition for life sciences companies.Co-Founder and CEO Franziska Broell pitched the company at the finals on Wednesday at BioNova’s Bioport Atlantic competition. The other finalists were Charlottetown-based AgTech company Fieldetect, and Halifax-based SeeChange BioChemistry, which will manufacture high-value compounds from biomass.Now in its ninth year, BIC is designed to support young life sciences companies by teaching contestants how to pitch for investment. As the winner, Motryx will receive $25,000 in seed funding and a $30,000 advisory services package to develop its business idea.Because hospitals and healthcare systems are becoming bigger and more centralized, blood samples are often shipped to labs over great distances, sometimes including air shipment. About 3 percent of samples end up being unusable because they are ruined due to the time, temperature or vibrations involved in the trip. Motryx has developed blood vials with sensors that transmit to labs data on the conditions during the trip, allowing lab officials to identify problems and solve them.“In the last six months, we’ve secured eight early adopter clients in Europe and the U.S., and we’ve been able to convert two into paying clients,” Broell told the panel of judges.
The company is also doing a pilot in Africa in collaboration with the Bill and Melinda Gates Foundation. The company so far has raised $1.5 million, including investment from Killick Capital and Concrete Ventures.
SeeChange BioChemistry is using a new bio-refinery process to produce high-value compounds from sustainable sources.
Co-Founder Chris Rafuse said the company, which was founded this year, has found a method to use a form of biomass to produce three industrial compounds: polyphenols, which are used in pharmaceutical industries to help with obesity and Type 2 diabetes; lactic acid, which can be used in 3D printing, plastics and other industrial uses; and another compound that Rafuse declined to name.
Refuse said the company is attacking a $4 billion global market opportunity, and current methods of producing these materials involve extraction from petrochemicals and result in a lot of waste. There is no waste with the SeeChange process, he said, and users demand more sustainable sourcing.
“We’ve never made an outside call,” said Rafuse, adding that the company’s six prospective clients all contacted SeeChange. The company will soon be ready to start selling. “We want to hit the market hard and fast so no one sees us coming and we think we can gain a lot of market share very quickly.”
Operating under a licensing agreement with the University of Prince Edward Island, Fieldetect is developing a hand-held device that will allow farmers to detect disease in their herds fast enough to prevent a large outbreak.
President and Co-Founder Andrew Trivett said the company is beginning with hog farmers, who now have to take samples from their herds and send them to a lab to be tested. In the day or two it takes to get the results back, a disease could spread, possibly leading to a cull of the entire herd.
“What if we could take that test and have the farmer do it themselves, have it take less than an hour and get the result immediately?” asked Trivett.
Fieldetect has developed LabAnywhere, a handheld device that will test a sample from the animal and give farmers the results on their smartphones in about 40 minutes. The team expects to begin shipping the product in late 2020 and sell about 500 units in the subsequent 12 months.
FOR IMMEDIATE RELEASE
BioNova, Grant Thornton and Cox & Palmer Propose Updates to N.S. Tax Credit to Boost Investment in Startups
November 6, 2019 – Halifax, Nova Scotia – BioNova, Grant Thornton and Cox & Palmer
BioNova, the organization leading the economic growth of the Health and Life Sciences sector in Nova Scotia in collaboration with Grant Thornton and Cox & Palmer have announced the launch of a report to advance the Innovation Equity Tax Credit (IETC) to better serve the interests of local businesses, the investment community, and the province’s economic development objectives. The announcement was made at BioNova’s 18th annual BioPort Atlantic conference, the largest health and life sciences conference east of Montreal.
This is the second time that BioNova and industry partners have provided recommendations to the province to evolve the tax credit, many of which were adopted with the launch of the new and improved IETC back in January. This has led to welcomed changes for many companies in Nova Scotia, as the attraction of capital has been a long-standing issue for emerging businesses.
“Great strides have been made and we believe there are still opportunities available to further improve and refine the IETC that will have a long-term positive impact on our economy and for the health and life sciences sector,” said Scott Moffitt, Executive Director of BioNova.
There are thirteen new recommendations listed in the report including an update which will allow directors, founders, and other investors with a vested interest in the company to benefit from the tax credits where they are currently excluded. The report also recommends providing early stage companies an opportunity to pivot their business plan if it will increase their chances of success while still being eligible for the IETC.
BioNova advocates on behalf of the sector for initiatives that are important to attract investment to the province. The IETC encourages investors to make equity capital investments in eligible Nova Scotian small and medium corporations, who are engaged in innovative activities that contribute to inclusive economic growth and increase investment in innovation.
“The Innovation Equity Tax Credit changes that were announced in January of 2019 and referenced again in the provincial budget for 2019/20 made a significant impact on the amount of local funds raised in our most recent offering. We were encouraged to see local investors benefit from the new changes. We truly believe that these are the types of significant improvements that are needed to ensure the success of technology-based businesses like ours, so we look forward to this trend continuing.”
– Peter Hickey, Co-founder and Executive Director, IR Scientific
“We’re hoping that our efforts to improve the business climate in Nova Scotia for innovation-driven entrepreneurship by doing things differently will continue to support economic growth in the province.”
–Gerry Lacroix, Partner, Grant Thornton
View the full report “Continuing the Advantage: INNOVATION EQUITY TAX CREDITS and Stimulating Innovative Companies” here
BioNova leads the economic development of Nova Scotia’s growing health and life sciences sector. Since 1993, BioNova has been accelerating the growth of its member companies to commercialize life-changing research to improve healthcare, provide healthier food, and develop sustainable solutions. BioNova champions the sector’s cluster of world-class research facilities, incubator programs, and companies who, together, bring investment and jobs to Nova Scotia.
For further information, media may contact:
Marketing Manager, BioNova
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