Cytovance said securing the investment, amounting to $22.5m (€19.6m), will allow it to meet growing client demand for clinical trial and commercial scale current good manufacturing practice (cGMP) services.
The company says the money will be used to fund facility, service and personnel expansion at its advanced research and manufacturing operation based in the Presbyterian Health Foundation’s Research Park, Oklahoma City, US.
“Great Point reached out to us last year,” said Darren Head, CEO of Cytovance, “It was evident from our first conversation they were very knowledgeable about the biologics manufacturing space, and recognised the potential growth opportunities for Cytovance with additional working capital."
As part of the deal, announced late yesterday, Great Point managing directors Jeffrey Jay and David Kroin, and senior vice president Noah Roades, will join Cytovance’s board of directors.William Canfield, chairman of Cytovance, echoed Head’s sentiments in welcoming the new investment.
“This transaction marks a transition of the company from angel investors to professional investors,” he said, “The transition is reflective of the company’s progress in the last couple of years due to the hard work of Darren and the entire team,” he said.Canfield played a prominent role in the recapitalisation and refinancing or Cytovance in 2005, along with Oklahoma energy executives, Aubrey McClendon and Tom Ward.
Commenting on the deal, Jeffrey Jay of Great Point Partners said: “Cytovance has established itself as one of the premier CMO’s in the biologics manufacturing space and we are excited to partner with the strong management team they have already assembled.
”Great Point focuses on investment opportunities in emerging healthcare and biotech companies. Jay said the recent success of Cytovance made the decision to invest in the company relatively straightforward.
“Cytovance is a classic Great Point platform company,” he said, “rapidly growing, recently profitable, well-managed and highly scalable.”