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14th August 2024 8:00 am
The healthcare sector is underpinned by an ageing population, increasing complexity of therapies, a propensity to outsource and a shift in focus from reactive to preventative healthcare. Not forgetting, the potential of technology and Generative AI to revolutionize the way we provide and access healthcare services. Which is why the healthcare sector has continued to display solid growth despite the challenging macroeconomic conditions, creating an array of exciting investment opportunities.
It is not surprising, therefore, that the healthcare industry continues to be a significant focus area for regionally-focussed lower-mid market investors NorthEdge, who have added a number of ambitious, fast-growth businesses to their healthcare portfolio over the last 12 months.
Most recently, the firm has completed an investment into Latus Group (Latus), a leading technology-enabled occupational health service provider. Headquartered in Hull, Latus works with businesses across a range of sectors to deliver world-class health strategies that support regulatory compliance, improve colleague health & wellbeing and enhance employee engagement – in turn reducing absenteeism and relieving wider pressures on the NHS through a preventative approach to health.
The investment will support the business to continue on its strong growth trajectory. The ambitious growth plan includes additional investment into people and the operational platform; improving commercial effectiveness; investing in customer success; and further investment into technology to support the shift to a digital health operating model. In addition, the investment will support the business to execute an M&A strategy to facilitate end-market, service-line and geographical expansion.
In February this year, NorthEdge supported portfolio company, Helios Global Group (Helios), with the strategic acquisition of Health, Economics and Outcomes Research (HEOR) and market access specialist, Cogentia.
Cogentia provides economic health research and data-led analysis to global life sciences and pharmaceutical markets, allowing them to assess how effective their products are. The acquisition represented an important milestone in Helios’ journey and builds on a hugely successful partnership with NorthEdge. Since the initial investment in 2021, Helios has more than doubled its revenues, grown its headcount, and expanded its global operations across Manchester, Oxford, and Connecticut in the USA.
In Q4 2023, NorthEdge completed investments into Antibody Analytics (Antibody), a CRO and trusted provider of immunology research services to an international client base, and Torbay Pharma (Torbay), a sterile injectable contract manufacturer and license holder.
The development capital investment into Antibody Analytics will facilitate significant job creation and expansion of its site in Motherwell, Scotland. This in turn will create a world-class facility that will provide additional capacity and enable increased research capabilities, allowing the business to continue to develop pioneering solutions – supporting Antibody’s continued growth and reinforcing its position as a recognised global leader in pre-clinical immunology research services.
NorthEdge’s investment into Torbay Pharma will support the business to strengthen its capabilities and significantly expand its reach in North America, while continuing to grow and invest in its people from its headquarters in Devon – ensuring the company is well positioned to meet evolving regulatory requirements in across the UK, US and Europe. Over the last six years, Torbay has been on a rapid growth journey that has seen an increasing demand for its commercial-scale sterile injectable fill/finish capabilities. The business supplies healthcare organisations and pharmaceutical companies throughout the UK and internationally.
Phil Frame, Partner and Healthcare investment lead at NorthEdge said: “Each of these investments represent an archetypal NorthEdge healthcare deal: a regionally-headquartered business with national reach and global potential; operating in high-growth and resilient healthcare markets; run by founders and entrepreneurs who are looking for partners to support them to deliver their exciting growth plans; and presenting us with the opportunity to build a business of both strategic and social importance – allowing us to play our part in improving global health outcomes.”
NorthEdge has been investing in the Healthcare sector since 2016. These recent investments build on the firm’s track record across healthcare services, pharma services and medical technology.
