RALEIGH – With the global pandemic driving 7% annual growth in life science service companies, Raleigh-based NovaQuest Private Equity is getting in on the action. And it had help from Goldman Sachs in making a new deal.
Goldman Sachs Specialty Lending Group provided the debt financing NovaQuest needed to make the deal in which CoreRX becomes part of the NovaQuest portfolio. The deal was announced early Tuesday.
However, financial terms were not disclosed.
CoreX is a global contract development and manufacturing organization in Clearwater, Fla. It offers preformulation, formulation, analytical and stability, clinical manufacturing, commercial manufacturing, and packaging services.
NovaQuest
The deal comes as the market for life science firms such as several based in the Triangle is forecast to grow to more than $57 billion by 2025, according to a recent report. And that estimate was made before the full scale of the COVID-19 pandemic struck in 2019.
“This transaction is an endorsement of CoreRx’s success to date and its potential for future growth with NovaQuest, a firm with deep healthcare and life sciences expertise and a long history of partnering with market-leading businesses to take them to the next level,” said Todd Daviau,CEO of CoreRx., in a statement “NovaQuest’s expertise in pharmaceutical services and enabling technologies will be invaluable as we look to further grow and enhance the value of our business in partnership with our customers.”
Ashton Poole and Jeff Edwards, partners at NovaQuest, explained in the announcement why the firm made the deal:
“Todd and his management team have done an excellent job building CoreRx from the ground up, growing from a small development organization into a high-quality, end-to-end CDMO with proven commercial capabilities. We look forward to supporting the CoreRx team as they continue to build out their capabilities and provide best-in-class service to the pharmaceutical industry.”
NovaQuest, which launhced in 2000, has some $2.75 billion under management and focuses on life sciences and healthcare platforms “focused on promoting the development and growth of next generation drugs, technologies and services.”
According to securities filings, NovaQuest raised more than $95 million in 2018 for its Private Equity Fund I.
In 2019, NovaQuest raised $146 million to boost its Pharma Opportunities Fund V to nearly $893 million.
The firm recently scored an exit when Italy-based healthcare group Angelini agreed to acquire Swiss-based Arvelle for $1 billion. NovaQuest had invested in Arvelle. Last August it sold Clinical Ink but maintained a minority interest.
