Nexelis
In 2015, NEOMED-LABS, a Montreal-based specialty laboratory, spun out from GSK’s Clinical Laboratory Services unit. The new entity brought with it world-renowned expertise in clinical immunology, building a strong foundation for partnerships with top global vaccine developers, innovative biotechnology companies, and prestigious governmental and non-governmental organizations.
In addition to its scientific expertise, NEOMED-LABS boasted state-of-the-art Biosafety Level 2 labs and quickly became a leading independent player in the immunology field. The lab built a reputation for personalized service, rapid method validation, and unparalleled expertise in immunotools engineering and stability testing. In its first years of operation, NEOMED-LABS validated more than 30 assays and supported FDA filings for 10 marketed vaccines with cumulative sales of $3 billion.
NEOMED-LABS’ impressive performance and market reputation attracted the attention of Ampersand Capital Partners, which was actively seeking promising lab-based platforms. NEOMED-LABS stood out by offering ‘Big Pharma’ technology practices in a boutique contract services environment. Ampersand saw the potential in NEOMED-LABS’ capabilities in the underserved areas of vaccines and infectious diseases that large CROs had not successfully penetrated.
In 2018, the firm invested in NEOMED-LABS, partnering with CEO Benoit Bouche and his leadership team on a successful management buy-out of the business from the NEOMED Institute. For Bouche and the leadership team, Ampersand’s life science knowledge and broad network would play a key role in driving the expansion of the company’s capabilities and reach within the rapidly evolving clinical trials and specialized laboratory services sectors.
“It behooves entrepreneurs to work with a knowledgeable private equity team like Ampersand, because instead of educating them about the science behind our business in team meetings, we are discussing peer-to-peer business with them and having more strategic discussions.” –Benoit Bouche
Keys to Success
Ampersand’s involvement created a series of acquisitions and strategic alliances that rapidly expanded the company’s capabilities and geographic reach. The first significant step was an acquisition of Pacific Biomarkers, a company that Ampersand had identified prior to their investment in NEOMED-LABS. Pacific Biomarkers was a well-established biomarker testing services provider supporting pharmaceutical, biotech, and in vitro diagnostics (IVD) manufacturing companies through preclinical and Phase I-IV studies of drug and IVD development. This acquisition effectively doubled the size of the business and added complementary services through metabolic disease capabilities, significantly enhancing its ability to serve clients across a broader spectrum of biomarker and bioanalytical needs throughout the drug development lifecycle. Following the acquisition, Bouche seamlessly integrated and unified the two companies into a global lab based CRO.
In 2019, recognizing the need for a brand that could support its growing global presence and expanded capabilities, NEOMED-LABS rebranded as Nexelis. This new identity marked a pivotal moment in the company’s evolution, signaling its transition from a regional player to a global contender in the specialty laboratory space.
Recognizing that today’s clinical trials are conducted globally, Ampersand supported Nexelis in expanding its participation in trials worldwide. This expansion strategy began with an alliance with Public Health England in 2019, adding infectious disease capabilities in the UK. The following year, Nexelis acquired AIT Bioscience, expanding its bioanalytical services to the Midwest US, and ImmunXperts, adding immunogenicity and immuno-oncology services in Europe. In 2021, the company further enhanced its capabilities by acquiring a GSK laboratory facility dedicated to supporting infectious disease vaccine development, bolstering its clinical testing services capabilities in Europe. Finally, Ampersand supported Nexelis development and execution of a strategic alliance with Joinn Labs to extend its bioanalytical services to China.
“Companies need to have a credible geographic footprint to serve the needs of the pharmaceutical industry. Ampersand helped us tremendously in identifying and approaching the right acquisition targets to make this happen.” –Benoit Bouche
When the COVID-19 pandemic emerged, Ampersand played a crucial role in positioning Nexelis to support vaccine development efforts. With the globalization plan for the brand firmly in place, Ampersand’s team helped Nexelis pivot its strategy and develop lab capabilities to capitalize on the urgent need for COVID-19 vaccine development and testing, leveraging its expertise in immunology and infectious diseases.
This strategic shift led to Nexelis working with major pharmaceutical companies including AstraZeneca, Johnson & Johnson, and Moderna on their vaccine programs. The company’s ability to rapidly adapt and scale its services during this critical time solidified its position as a premier infectious disease clinical trials laboratory, demonstrating the value of its specialized capabilities in times of global health crises.
Through strategic vision, targeted acquisitions, and adept navigation of global health challenges, Ampersand transformed Nexelis from a niche player with a single laboratory in Canada into a multi-site global leader in vaccine and infectious disease testing services. As Nexelis grew and established itself as a leader in its field, Ampersand was pivotal in enabling an acquisition. The firm introduced Nexelis to suitable bankers and potential buyers, partnered closely with the management team to develop comprehensive financial models and analyses, and assisted in creating materials to facilitate the sale process. Most importantly, Ampersand collaborated with the management team to determine the appropriate timing and identify the best long-term business partner for Nexelis.
The partnership between Ampersand and Nexelis culminated in an acquisition by IQVIA, with the Chief Scientific Officer, much of the operations and management team, and the scientific team remaining with the company post-acquisition. This continuity ensured that the expertise and innovative spirit that had driven Nexelis’ growth would continue under new ownership, maintaining its position as a leading specialty laboratory in immunology and related fields.
The relationship between Ampersand and Nexelis’ leadership didn’t end with the acquisition. Benoit Bouche, who had skillfully led Nexelis through its remarkable growth journey, continued his association with Ampersand as an Operating Partner. In this role, Bouche brings his valuable experience and insights to bear on new investment opportunities and portfolio companies, further exemplifying the long-term, collaborative approach that characterizes Ampersand’s commitment to Forging Leaders in Life Sciences and creating value that extends well beyond individual investments.
“Most investors shake your hand and wave goodbye after a sale. With Ampersand, it was, ‘What’s next?’ They’re always thinking ahead. That’s what attracted us to them in the first place and what compelled me to take on a role as an Operating Partner.” –Benoit Bouche
Disclosure: The case study and results included are for illustration purposes only and may not be typical. The case study should not be considered specific investment advice, do not take into consideration a specific situation, and are not intended to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Case study testimonials were provided by clients between May 2024 – July 2024. The client was not compensated, nor are their material conflicts of interest that would affect the given testimony. The testimony may not be representative of the experience of other current clients and does not provide a guarantee of future performance success or similar services.
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