Clydesdale Bank has provided a new £5 million package for Lab21, the global specialist in personalised medicine and clinical diagnostics.
The deal will see the Bank provide Cambridge-based Lab21 with initial funding of £5m to support the firm’s plans for growth, with the potential for further financial support for the their rapid growth plans.
The transaction was supported by Clydesdale Bank’s Growth Finance team, which delivers financial support specifically aimed at high-growth, venture capital-backed businesses with strong intellectual property.
Lab21, which also has a base in Greenville, South Carolina, provides diagnostic products and services for companion diagnostics in personalised medicine, blood bank screening and other clinical diagnostics. Lab21 customers include major pharmaceutical companies, other diagnostic manufacturers, clinical laboratories and biotechnology companies.
The company operates across two divisions – a clinical laboratories division which develops molecular diagnostic services for patients, clinicians and the pharmaceutical industry in oncology and infectious diseases, and a diagnostic products division which develops and manufactures a range of infectious disease tests including malaria, Chagas, syphilis and cytomegalovirus (CMV), which are sold globally for use in the screening of blood supplies.
Lab21 is a rapidly growing molecular and immunodiagnostics manufacturer and is expected to deliver greater than 30% revenue growth in 2012. The company was founded with a view to building a major international diagnostics business via a buy-and-build strategy with strong organic growth through new products, particularly in international markets.
Sandra Hope, Director, Growth Finance at Clydesdale Bank, said: “This is certainly a rapidly growing and innovative healthcare company at the forefront of its field. It has a 21st century vision for medical care, and its prospects for growth are matched by the management team’s determination to succeed.”
Susan Lowther, Chief Financial Officer of Lab21, said: “With the investment from Clydesdale Bank, Lab21 is looking to expand its GMP manufacturing capability and expand its international sales channel particularly into the world’s largest healthcare market, the US. I am delighted to have completed this finance round with Clydesdale with their ability to support high growth SMEs in today’s difficult financial markets.”
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Notes to Editors:
About Clydesdale Bank:
Clydesdale Bank is part of the National Australia Bank Group. Clydesdale Bank was established in 1838 in Glasgow and, as one of Scotland’s largest banks, has a proud history of innovation and support for Scottish industry and communities.
Clydesdale Bank Corporate & Structured Finance (CSF) is a specialist division which provides a full range of day to day banking services for larger SMEs and Corporate businesses, and funding for refinancing, working capital and expansion. It also works with companies, private equity houses and management teams to provide debt funding for management and institutional buy-outs, and to support organic expansion and acquisitions.
Lab21 is a global leader in personalised healthcare. It provides diagnostic products and services and supports blood bank screening, medical diagnostics and drug discovery. Lab21 customers include international healthcare providers, pharmaceutical and diagnostic companies. The Products division of Lab21 manufactures immunodiagnostic kits and reagents that are distributed internationally and is focused on infectious diseases for the blood-banking and clinical markets. The Clinical Laboratory division has a growing test portfolio providing companion diagnostics and high technology molecular assays. Lab21's corporate offices are based in Cambridge, UK and South Carolina, USA with a GMP manufacturing site in Cambridge and other manufacturing facilities in Newmarket, Camberley and Bridport. Website: www.lab21.com