Therapure launches IPO to grow biologics contracting business
A preliminary prospectus filed with Canadian Securities Regulators last week states that Therapure aims to raise funds “for plant expansion" and the development of its therapeutic biologics business.
Therapure's 130,000 sq ft facility in Toronto makes intraveneous immunoglobulin (IVIG) and albumin-based therapies for both its own pipeline as well as for drug industry customers.
The site has seen a number of investments in equipment and additional clean room space since the firm was set up in 2008 by Canadian private equity fund Catalyst Capital Group, as well as C$17m ($13m) worth of investment from its clients.
“Therapure has invested and will continue to invest in the capacity to add commercial scale capabilities,” the company says in its prospectus.
“Sustaining the infrastructure to produce biologics is a strong motivating factor for biotech companies to seek Therapure’s CDMO services due to the long lead times, regulatory hurdles and costs to develop their own facilities.
“The replacement cost of Therapure’s facility (including land value) is estimated at $180m [$135m] and would take a minimum of three to four years to reconstruct.”
CDMO Growth
Therapure claims it has seen a CAGR of around 50% since 2010.
Several top ten big pharma clients on its books, as well as a number of mid-sized pharma and biotech/emerging pharma companies.
Therapure has an ongoing contract with french firm LFB for the manufacture of two plasma proteins, and a long-term “take or pay contract” with Insmed – a contributor to the retrofit of one of Therapure’s manufacturing suites - for the manufacture of its cystic fibrosis therapy.
The firm is looking to increase its share of the contract biomanufacturing market, which it estimates to be worth around $4bn, and prides itself on its client retention.
“This client ‘stickiness’ is due to the high costs that would be incurred by a client if it switched to a competitor as measured in both time and money,” the company says.
“Management believes that it would take approximately three years and cost around $10 million to effect an established process. Management is not aware of any client having left Therapure for a competitor over the past four years.”
