How 3 Life Sciences Firms Are Overcoming Unique Challenges
From startups to companies approaching commercialization, J.P. Morgan’s Life Sciences bankers are helping cutting-edge companies succeed. Learn how three very different Life Sciences companies are finding growth, even in the midst of an increasingly complex FDA approval environment.
Helping Finance Nexcore’s Acquisition
Headquartered in Waldwick, New Jersey, Nexcore is a privately held contract manufacturer focused on all phases of medical device development and commercialization. Helping clients in pilot production for clinical trials all the way to full-volume manufacturing and after-market services, Nexcore adheres to the same stringent FDA manufacturing standards required for medical devices. Nexcore’s goal is to build a contract manufacturing innovation platform to design, develop, assemble and package single-use instruments and disposables, as well as provide electronic manufacturing services.
When J.P. Morgan first reached out to Nexcore in December 2016, the timing was serendipitous. Nexcore was looking to acquire another medical device company in New Hampshire.
Along with a private equity firm and a third-party nonbank lender, J.P. Morgan helped provide the capital Nexcore needed to complete its acquisition. The firm’s $9.5 million loan consisted of a $5 million working capital facility loan and a $4.5 million term loan.
Following the deal’s completion, Nexcore transitioned all of its treasury services to J.P. Morgan. The relationship with the firm helps position Nexcore for potential acquisition opportunities as it continues to expand its presence in the medical device industry.
Positioning Amring for Growth
Established in 2015, Amring Pharmaceuticals is a privately held startup that develops, manufactures and markets niche generic pharmaceuticals. Based just outside of Philadelphia in Berwyn, Pennsylvania, Amring is partnered with a network of international biopharmaceutical companies. Although Amring is a startup, it had more than $30 million in sales in 2016—and has an active licensing and acquisition deal effort.
In an effort to become a separate entity from its parent company in 2016, Amring looked for a new bank that could support its immediate and long-term financial goals. Ultimately, Amring was attracted to J.P. Morgan’s global platform and its specialized commercial banking life sciences industry focus. The company appreciated the presence of a local life sciences bank that could provide a scalable and customized financial capability while having the global reach to connect Amring with a large network of industry resources.
Unlike more established companies that can provide prior-year earnings reports, Amring only had four months’ worth of bank statements. Focusing on quality of earnings reports instead, the J.P. Morgan team crafted a $10 million asset-based loan that would allow Amring to fund its growth.
While the company is still in its early stages, Amring’s relationship with J.P. Morgan positions it for future growth, acquisitions and other options thanks to the firm’s resources and industry expertise.
Streamlining ContraVir’s Treasury Needs
ContraVir is a public company developing a portfolio of compounds to treat hepatitis B and other diseases, such as herpes zoster (shingles). In addition to its headquarters in Edison, New Jersey, ContraVir has a research facility in Edmonton, Canada, and a biotechnology center outside of Philadelphia in Doylestown, Pennsylvania.
ContraVir and J.P. Morgan first developed a relationship through a mutual commitment to BioNJ, an organization supporting life sciences innovation in New Jersey. In addition to learning about J.P. Morgan’s support of early-stage life sciences companies through BioNJ, ContraVir had some connectivity to J.P. Morgan’s Healthcare Investment Banking team. ContraVir wasn’t actively looking for a new bank at the time; however, it was open to a meeting with the J.P. Morgan Life Sciences team to discuss how the firm could support the company and help it grow. After learning about J.P. Morgan’s full breadth of life sciences solutions, ContraVir’s finance team accepted J.P. Morgan’s invitation to attend a demo of the global online portal J.P. Morgan Access.
Ultimately, it was the combination of the firm’s comprehensive treasury products and extensive resources that impressed ContraVir and led them to switch to J.P. Morgan as its primary operating bank. With the demonstration of J.P. Morgan Access, ContraVir saw an opportunity to improve efficiencies and cash reporting while obtaining valuable insight into its own data. Gaining access to J.P. Morgan’s expertise in addition to their ongoing relationship with the J.P. Morgan investment banking team, ContraVir recognized that it could grow with the firm as it evolves through the life sciences business cycle.