Philadelphia, PA – July 31, 2015 – Xcelience, a contract development and manufacturing organization(CDMO), announced today that it has made a structured cash investment in Powdersize, a Pennsylvania-based company specializing in milling, micronization and powder size classification within the pharmaceutical industry. This investment will help grow Powdersize’s business while simultaneously adding a complete set of particle size control solutions to Xcelience’s portfolio of capabilities.
“As we continue to build our suite of services, we are excited to join with Powdersize in an integration that combines their leadership and 23 years of milling and micronizing experience, with our two decades of expertise in drug development,” said Derek Hennecke, President and CEO of Xcelience. “We believe this integration with Powdersize will allow us to deliver greater speed to clinic through exceptional science and extensive capabilities.”
Many drugs in pharmaceutical development are poorly soluble. Reducing particle size through micronization is considered the leading technology for increasing the bioavailability of oral dosage forms when the API has solubility issues. Current industry trends increasingly demand micronization of APIs with particle sizes of 1-10µm.
“This collaboration is a natural fit for both sides,” says Wayne Sigler, CEO of Powdersize together with partner TJ Higley. “We fully expect both companies to benefit from each other’s strengths and capabilities in drug development and commercial products.” Powdersize will continue with expansion plans in a recently added, state-of-the-art facility, to support the additional business expected with the integration and shared development projects.
“By integrating with Powdersize, we will be able to do more in fewer steps,” Mr. Hennecke adds. “That means faster time to clinic. It also supports our mission to provide clients with unprecedented levels of innovation and industry-leading expertise to best advance their development and commercial pursuits.”
Fairmount Partners provided financial advisory services supporting the owners of Powdersize. Neal McCarthy, Managing Director of Fairmount added “we are pleased to help these two excellent businesses to expand the services they can provide to their loyal customers.”
Xcelience Suite Science- Xcelience offers a suite of services enabling clients to partner with a single CDMO for all of their global clinical outsourcing needs. Services include preformulation, analytical services, formulation development, cGMP manufacturing, small-scale commercial manufacturing, and global clinical supplies packaging and logistics. Xcelience takes pride in delivering the highest standards in science and service with an emphasis on quality, cost and speed. For more information, visit Xcelience’s website at http://www.xcelience.com.
Powdersize is a customer service driven contract manufacturer, providing expertise in particle size reduction and particle size control technologies intended for powders used within the pharmaceutical industry. With two decades of manufacturing experience, Powdersize can develop a robust process at any scale of development, including R&D, pilot scale or commercial scale. They combine extensive experience and their unique ability to design custom jet milling systems appropriate for the client’s need. They are one of the leading contract manufacturers offering milling and micronization services in the United States. Powdersize is located in Quakertown, PA; approximately 1 hour north of Philadelphia. For more information, visit Powdersize’s website at http://www.powdersize.com.
About Fairmount Partners
Fairmount Partners is one of the largest investment banking groups in the Mid-Atlantic region. The firm specializes in advising middle-market growth companies with mergers and acquisitions, capital raising and strategic advice. Fairmount offers deep expertise in the Healthcare Services and Technology, Information Technology Services, Technology and Software and Industrial and Consumer Products markets. Fairmount has completed more than 140 transactions throughout North and South America, Europe, Asia and Australia. For more information, visit www.fairmountpartners.com
Principals of Fairmount Partners acted as advisors to Powdersize in this transaction.