London, UK – 2 December 2015 – GHO Capital, the European specialist healthcare investor, today announces the acquisition of Quotient Clinical (Quotient or the Company), a provider of outsourced, early-stage drug development services to the pharmaceutical industry.
Headquartered in the UK and employing over 280 professionals, Quotient Clinical enables pharmaceutical and biotechnology customers to improve research and development productivity and accelerate drug development timelines.
Quotient Clinical’s Translational Pharmaceutics® platform offers a differentiated service proposition in the form of an integrated approach to drug formulation development, “real-time” manufacturing and clinical testing within a single location. With significant time and cost savings, customers are able to bring drug products to market faster. The specific benefits of Translational Pharmaceutics® include: i) reducing development timelines for customers; ii) reducing costs by conserving drug substance through precise dose selection and formulation modification in response to emerging clinical data; and iii) simplifying the supply chain for customers.
Quotient has a strong customer base, providing support to a range of top-tier pharmaceutical companies and small-medium sized biotechnology companies. The Company has 52,000 ft2 of integrated operating facilities in Nottingham for pharmaceutical sciences and clinical trials, and a data sciences function based in Edinburgh which includes medical writing, statistics and programming. Quotient’s state-of-the-art facilities are approved to Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) standards with scalable technologies and processes.
The outsourced early-stage drug development market is expected to grow strongly over the next five years, primarily driven by growth in the number of compounds entering development, a favourable funding environment for biotechnology companies and new challenges in drug development. With attractive market dynamics and a global customer base, Quotient is uniquely-positioned to deliver international growth.
Mike Mortimer, Executive Partner and Founder at GHO Capital, said: “The outsourced services and contract development and manufacturing organisation space is one that GHO Capital knows extremely well. Quotient Clinical has a highly attractive business model which can be scaled and expanded across Europe and in the USA in particular, making this an excellent investment opportunity for our fund. We look forward to working with the management team to further support the Company’s internationalisation.”
Mark Egerton, Chief Executive Officer of Quotient Clinical, commented: “Quotient Clinical has delivered exceptional growth over the past three years and our unique offering continues to drive international demand. We now have a robust platform from which to enhance our services on a global scale and, as a specialist investor, GHO Capital brings a deep network of experts across the outsourced services sub-sector to expedite this approach. We look forward to working with the team at this pivotal phase in Quotient’s growth strategy.”
At GHO Capital, the transaction was led by three Partners; Mike Mortimer, Alan MacKay and Mike Turner. HSBC Bank plc provided debt financing for the transaction. Macfarlanes LLP provided legal advice, and PwC provided accounting advice, to GHO Capital. At Quotient Clinical, the transaction was led by Mark Egerton, Chief Executive Officer and Gordon Cameron, Chief Financial Officer. Travers Smith provided legal advice to Quotient Clinical.
About GHO Capital
Global Healthcare Opportunities, or GHO Capital Partners LLP, was founded in 2014 as a specialist healthcare investment adviser based in London. Our vision is to apply global capabilities and perspectives to build a world-class healthcare specialist private equity firm by recognising and seizing the highly attractive and underpenetrated European market opportunity. We have a powerful combination of transaction, investment and industry skills which sets us apart from traditional private equity firms. For further information, please visit www.ghocapital.com.
About Quotient Clinical
Quotient Clinical offers unique services – based on its Translational Pharmaceutics® platform – that integrate formulation development, real-time drug product manufacturing and clinical testing, significantly reducing the time and cost of bringing a drug to market. For more than 20 years, Quotient Clinical has brought innovation to drug product development programs for pharmaceutical and biotechnology customers worldwide. The Company is based in purpose-built, fully integrated facilities in Nottingham, UK, where formulation development, real-time GMP manufacturing and early clinical trials are performed in the same facility. It employs over 280 staff, offering a full range of support services, from study set-up right through to data analysis and reporting. For further information, please visit www.quotientclinical.com.
Issued for and on behalf of GHO Capital by Instinctif Partners.
Melanie Toyne-SewellManaging Partner