News
LDC invests £18m in TMC Pharma Services
24 Aug 2022
Leading mid-market private equity firm LDC has made an £18m minority investment in TMC Pharma Services.
TMC Pharma Services (TMC) is a global pharmaceutical development organisation that specialises in innovative treatments for rare diseases and oncology. TMC has successfully supported over 150 Orphan Drug Designations in the past 10 years; in the USA, EU, Japan and Australia. The business provides a full range of expert pharma and biotech support services, from pre-clinical to post-marketing, for human medicines and devices. TMC’s senior team, based in the UK, is supported by a worldwide network of over 900 contracted Associates, who are hand-picked to match the exact needs of each individual project. TMC’s network of Associates includes some of the very best subject-matter experts in medicinal product development.
Established in 2001, TMC operates globally across four offices and hubs in the UK, Ireland, Japan and the US. The business has more than doubled its revenues over the past five years to £11.8m in 2021.
LDC is backing the existing management team, led by Co-Founder and CEO Julie Matthews and COO Carol Woodward. Its minority investment will help TMC to further expand into the US and Asia markets. The business also plans to double the number of full-time employees it has over the next five years and open new offices in key international markets.
The transaction was led by Dewi Hughes, Partner and Head of the South West & Wales at LDC, and Investment Director Stefan Gunn, both of whom will join the TMC board. As part of the transaction Pharma expert and entrepreneur Thomas Engelen is joining the board as Non-Executive Chair.
Julie Matthews, CEO at TMC Pharma Services, said: “Our unique business model has worked outstandingly well over the last 20 years, including navigating a challenging COVID period successfully. We have been delighted to help many clients to bring valuable treatments to patients, especially those with Rare and Orphan Diseases with few therapy options. Now, with LDC’s support we are entering an exciting next phase, where we will further strengthen our team, and expand our global reach, for the benefit of patients with unmet medical needs, our clients and for our staff and Associates.”
LDC’s relationship-focused approach, coupled with their sector knowledge and experience of supporting international growth strategies made them the perfect choice of partner to support TMC on the journey ahead.”
Stefan Gunn, Investment Director in LDC’s South West team, added: “Julie and Carol lead an incredibly strong team and have built a market-leading reputation in the healthcare sector. We’re looking forward to helping the team to build on this momentum in the UK and overseas.”
This minority investment by LDC’s South West & Wales team builds on a successful year to date following the team’s investment in Bristol-based cake manufacturer Cakesmiths and its exit from documentary maker Plimsoll Productions in a £131m transaction with ITV. The private equity firm recently announced that it has extended its partnership with The Prince’s Trust to support the next generation of entrepreneurs. The five-year partnership will help up to 10,000 young people across the UK to start, sustain and grow their own businesses.
LDC is a leading investor in UK-headquartered healthcare businesses and has provided more than £100m of investment to businesses in the sector in the last three years. The private equity firm has supported the growth of clinical trials operator Synexus and contract development and manufacturing organisation Penn Pharma, and recently invested in mobile clinical solutions specialist EMS Group Solutions.
TMC Pharma Services was advised by Torreya (Corporate Finance) and Shepherd and Wedderburn (Legal).
LDC was advised by EY (Corporate Finance), Blake Morgan (Legal), PWC (Financial and Tax Due Diligence) and BDO (Commercial Due Diligence).