Investment firm Great Point Partners scoops up German CDMO Lyocontract

On a mission to debut life science companies on the global stage, healthcare investment firm Great Point Partners is making a play for private German contract development and manufacturing organization (CDMO) Lyocontract.

Great Point on Thursday revealed that it has acquired Ilsenburg, Germany’s Lyocontract, which has been in the drug development and production business since 2007.

Lyocontract operates out of a single facility that offers aseptic liquid filling, freeze-drying and packaging services, Great Point said in a release. The company specializes in the manufacturing of liquid and freeze-dried injectable drugs, which are shipped around the world for both clinical and commercial use.

Financial details of the deal were not disclosed.

Lyocontract’s production plant—which caters to customers in Germany and beyond—was built out between 2010 and 2011 and received its manufacturing license in 2012, according to the company’s website.

Lyomark Pharma became the majority shareholder in Lyocontract back in August 2017, the website notes, adding that both companies are privately held and will continue to be managed independently.

The acquisition deal marks the first investment to be sourced and executed by Great Point’s London-based European team, which strives to help growing healthcare companies establish a worldwide presence and enter the U.S. market, the investment firm said.

“Lyocontract has a strong track record of providing highly specialized and critically important manufacturing services to pharmaceutical companies, bringing a powerful combination of experience, expertise and technological capabilities to all of its partnerships,” David Slattery, senior vice president at Great Point, said in a statement. “This investment underscores GPP’s dedication to backing exceptional, proven management teams in businesses with a competitive advantage.”

With the buyout, Great Point and Lyocontract will aim to scale up the CDMO’s contract manufacturing capabilities and distribution reach, Lyocontract CEO Tino Galgon added.

Great Point has made a number of contract manufacturing investments in recent years. In early 2022, the group paid an undisclosed sum to pick up San Diego-based CDMO Performance Cell Manufacturing. As part of the deal, Performance Cell rebranded to Cellipont Bioservices and announced a slew of leadership changes.

Prior to that, Great Point invested $22 million into Bionova in 2019, with the cash used to fund the construction of the CDMO’s 36,000-square-foot biologics facility in Fremont, California.

Great Point has also plugged investments into MaSTherCell, Cytovance Biologics and Tergus Pharma.

Meanwhile, the company last year chipped in on a fundraising round for French biotech Abivax.