[SINGAPORE] Clinical research and testing provider Novotech on Monday (Mar 31) announced that Temasek and GIC will acquire a “significant stake in the company”, and that existing investor TPG will be reinvesting through its TPG Asia fund.
Affiliates of Temasek and GIC have signed binding agreements for the acquisition, with the additional capital “earmarked to accelerate (Novotech’s) global growth”, said GIC in a press statement. Terms of the transactions were not disclosed.
The fresh funds will help Novotech to pursue organic growth, as well as merger and acquisition opportunities.
The group provides biotech and small-to-mid-sized pharmaceutical companies access to clinical trial destinations and patient populations, helping these companies’ drug development.
Its chief executive John Moller said the group is positioned to grow in the Asia-Pacific, where demand for clinical trials is forecast to grow at 15 per cent a year. Novotech has also made “significant gains” in the US and Europe through acquisitions, he added.
Vincent Wong, co-head of healthcare at TPG Capital Asia, noted: “This transaction follows TPG’s playbook of doubling down on winners while further demonstrating TPG’s thematic investment approach and deep expertise in healthcare.”
TPG first invested in Novotech in 2017.
In 2022, Novotech raised US$255 million in equity through a private placement, which valued the company at US$3 billion.
It considered a listing in Hong Kong in 2021, but the plans were cancelled due to “market volatility”.
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