Clydesdale Bank has provided a new £5 million package for Lab21, the global specialist in personalized 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 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 personalized 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.”