Information on the Target

Xpress Biologics, based in Liège, Belgium, is a premier developer specializing in expression systems and manufacturing processes essential for producing plasmid DNA and protein therapeutics. Established in 2014, the company has emerged as a leader in the production of plasmid DNA, which is increasingly recognized as a critical starting material in the burgeoning field of gene and cell-based therapies, as well as in the development of mRNA-based vaccines. This capability positions Xpress Biologics at the forefront of advanced therapy medicinal products that address severe illnesses, including genetic disorders and viral infections such as COVID-19.

With the global plasmid DNA market currently valued at approximately $1.1 billion, projections indicate a robust growth trajectory, anticipated to witness high double-digit growth rates over the next five years. Xpress Biologics is well-positioned to capitalize on this growth potential, significantly contributing to the advancement of gene and cell therapy solutions.

Industry Overview in Belgium

The life sciences sector in Belgium is characterized by a rich ecosystem that encourages innovation and investment, particularly within biopharmaceuticals. The country is home to cutting-edge research institutions and a strong network of biotech firms, making it a prime candidate for developments in biotherapeutics and advanced therapeutic medicinal products (ATMPs). Belgium's strategic location in Europe further enhances its appeal for companies looking to access broader markets.

Furthermore, the Belgian government has established supportive policies and funding initiatives aimed at fostering growth within the biopharma sector. This makes the country an attractive hub for both startups and established firms engaged in developing advanced therapies. The collaboration between academia and industry here has led to transformative breakthroughs in medical treatment, particularly in gene therapy and vaccine development.

As the global demand for innovative healthcare solutions escalates, Belgium's life sciences industry is expected to expand significantly, driven by advancements in technology and increasing investment in research and development. The emergence of new therapies has opened up numerous opportunities, not only for existing companies but also for newcomers seeking to enter the dynamic healthcare landscape.

Moreover, the impact of the COVID-19 pandemic has accelerated the integration of mRNA technology in vaccine development, confirmatively establishing a burgeoning environment for plasmid DNA production. Companies like Xpress Biologics are thus integral to the evolving landscape, meeting the burgeoning demand for high-quality plasmid DNA in therapeutic applications.

The Rationale Behind the Deal

The acquisition of a majority stake in Xpress Biologics by ARCHIMED is motivated by the firm's recognition of the company’s advanced capabilities in producing highly purified plasmid DNA efficiently. This strategic investment allows Xpress Biologics to scale its production capacity by a factor of ten. With ARCHIMED's support, the company aims to expand its operations to capture a greater share of the rapidly evolving gene and cell therapy market.

Particularly following recent advancements in mRNA vaccine technologies and gene therapies, there is a pressing need for increased plasmid DNA production. The investment empowers Xpress Biologics to broaden its customer base significantly while internationalizing its distribution channels, particularly targeting growth in the U.S. and Asia-Pacific regions.

Information about the Investor

ARCHIMED is a renowned investment firm focusing on growth opportunities within the small-cap healthcare sector in Europe and North America. With its MED II fund, ARCHIMED strategically partners with innovative companies, acquiring majority stakes ranging from €5 million to €30 million. The firm's track record includes significant investments that have significantly transformed the operational landscapes of its portfolio companies within the life sciences industry.

Additionally, ARCHIMED's first fund, MED I, has garnered recognition as the top-performing buyout fund globally for the 2014 vintage, according to Preqin data, celebrating substantial returns that exceed six times the initial capital invested. This solid performance showcases ARCHIMED’s expertise and strategic positioning as a leader in facilitating substantial growth for life science ventures across the continent.

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The investment in Xpress Biologics appears promising, bolstered by the company’s established market position and the projected growth of the plasmid DNA sector. Given the surge in demand for gene and cell therapies, Xpress Biologics stands to benefit substantially from ARCHIMED’s backing, which is aimed explicitly at expanding production capabilities.

Furthermore, the leadership team at Xpress Biologics, including the newly appointed CEO Carola Jüstel, brings a wealth of relevant experience, which boosts confidence in the successful execution of the company's ambitious scaling strategy. Jüstel's previous roles underline her capability in managing production under Good Manufacturing Practices, enhancing the credibility of Xpress Biologics as a top contender in the biopharmaceutical field.

Also noteworthy is the reinvestment by the founders and Noshaq, indicating a strong belief in the growth trajectory of the company. Such reinvestments suggest that stakeholders are aligned regarding the company's future direction and growth potential, establishing a foundation for continued innovation and expansion.

Overall, this acquisition reflects a strategic alignment of interests that could catalyze significant advancements in the production of advanced therapy medicinal products, positioning both ARCHIMED and Xpress Biologics for success in a rapidly evolving market.

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