A New Leader in Chemical Drug Discovery is Born with the Acquisition of OmegaChem by NuChem Sciences
Fonds de solidarité FTQ, Investissement Québec and BDC Capital invest $37.6 million to support the transaction
MONTRÉAL, Aug. 17, 2021 /CNW Telbec/ - NuChem Sciences, a drug discovery in chemistry contract research organization (CRO) located in Montréal, today announced the acquisition of OmegaChem of Lévis, Québec. As a result of this transaction, the new group formed by the two companies becomes Canada's largest CRO in drug discovery in chemistry.
This acquisition was made possible by a total investment of $37.6 million from Fonds de solidarité FTQ ($17.4 million), Investissement Québec ($10.1 million) and BDC Capital ($10.1 million), in addition to HarveyCorp's purchase of the buildings.
"We're proud to join forces with OmegaChem to create the largest CRO in drug discovery and chemistry in Canada, with 200 experienced scientists and support staff," said NuChem president Marc LeBel, Pharm.D. "The new group will strengthen the position of both companies as they continue harnessing their expertise to run their operations."
"We're witnessing the creation of a promising company that will be a leader in its field," said OmegaChem president François Laflamme. "Since both organizations are intensively recruiting right now, the transaction will not result in any job losses."
"With a new integrated service offer and their capacity for complex projects, NuChem and OmegaChem are now better placed to face growing global competition. This transaction speaks to the vitality of the teams led by Marc LeBel and François Laflamme, as well as the Québec life sciences sector as a whole, and once again demonstrates our commitment to supporting Québec healthcare companies with development capital," said Dany Pelletier, Executive Vice-President for investments at the Fonds de solidarité FTQ.
"We are proud to be a part of this acquisition and to partner once again with NuChem to fuel its growth," noted Investissement Québec President and CEO Guy LeBlanc. "In the process, we are helping to create a major Québec player in the biotech and pharmaceutical industries in cooperation with our financial partners and to consolidate Québec's expertise in the crucial field of drug discovery."
"BDC Capital is proud to contribute to the creation of the largest contract research organization in drug discovery in chemistry in Canada, and by extension, to research and development in life sciences. We are thrilled to support the management team in achieving their growth objectives," said Patrick Latour, Senior Vice-President, Growth & Transition Capital at BDC Capital.
Drug discovery involves the design and synthesis of new molecules with biological activity or potential therapeutic efficacy and that ultimately become new drugs for patients. Its specific objective is to optimize the biological activity of so-called "hits" or "lead compounds," identified by high-throughput screening or synthesis through close collaboration between multidisciplinary teams in chemistry, cell biology, biochemistry and pharmacology.
Fasken, BCF and Blakes acted as legal counsel for, respectively, NuChem Sciences Inc., OmegaChem Inc. and the Fonds de solidarité FTQ.
About NuChem Sciences
NuChem Sciences offers a variety of services to support international biotech and pharmaceutical industries in their efforts to identify and optimize preclinical candidates in the area of small molecule drug discovery and early chemical development. Since its inception in 2011, NuChem has contributed to the discovery of several new drug candidates that have progressed to human clinical trials.
About OmegaChem
Founded in 1988, OmegaChem is a Canadian manufacturing company engaged in organic, medicinal and process chemistry. OmegaChem has state-of-the-art labs and more than 145 chemical hoods.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ invests to build a better society by channelling the savings of its 723,501 shareholders into development and risk capital investments to help Québec transition to a green economy, to a human-centred world of work, and to a healthier society. The Fonds offers businesses unsecured financing and strategic support. With $17.2 billion in net assets as at May 31, 2021, the Fonds has supported 3,437 partner companies and 247,612 jobs.
About Investissement Québec
Investissement Québec's mission is to play an active role in Québec's economic development by spurring business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province's administrative regions, the Corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists Québec businesses with export activities.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country's most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.
SOURCE NuChem Sciences