J.P. Morgan’s Life Sciences bankers are contributing to the success of cutting-edge enterprises of all stages, from start-ups to businesses on the verge of commercialization. Lifesciences firms overcoming challenges posed by rapidly evolving regulatory frameworks to ensure compliance and patient safety. Discover how three very distinct life sciences firms industry are achieving growth while operating in an FDA regulatory climate that is becoming more difficult. In this blog, we will explore which lifesciences firms overcoming challenges.
Here are 3 Lifesciences Firms Overcoming Challenges:
1. Amring
Amring Medications is a privately owned firm that began operations in 2015 with the goal of developing, manufacturing, and marketing generic pharmaceuticals for specialized markets. Amring is a partner with a network of multinational biopharmaceutical businesses and has its headquarters in Berwyn, Pennsylvania, which is located just outside of Philadelphia.
Despite the fact that Amring is a young company, it generated more than $30 million in revenue in 2016, and it is now pursuing license and acquisition transaction opportunities. Amring started looking for a new bank in 2016 with the intention of breaking away from its parent business and becoming an independent organization. The bank needed to be able to support the life sciences firms’ short-term and long-term financial objectives.
In the end, J.P. Morgan’s worldwide infrastructure and its specific commercial banking life sciences sector emphasis were what drew Amring in. The availability of a local life sciences bank that could provide a scalable and personalized finance capacity while also having the worldwide reach to link Amring with a vast network of industry resources was much welcomed by the firm.
Amring only had bank statements for the previous four months, in contrast to more established businesses that are able to furnish reports on profits from the preceding year. Instead of concentrating on the quality of the financial reports, the team at J.P. Morgan designed an asset-based loan in the amount of $10 million for Amring so that it could finance its expansion.
Amring’s link with J.P. Morgan, which gives it access to the firm’s resources and industry experience despite the fact that the business is still in its early stages, puts it in a position to engage in future expansion, acquisitions, and other opportunities.
2. Nexcore
Nexcore is a privately owned contract manufacturer with its headquarters in Waldwick, New Jersey. Their primary area of expertise is in all aspects of the development and marketing of medical devices. Nexcore conforms to the same high FDA manufacturing standards necessary for medical devices, from helping customers with pilot production for clinical trials all the way up to full-volume manufacture and after-market services.
These requirements are required for medical devices. Nexcore’s objective is to construct an innovation platform for contract manufacturing that will allow the company to design, develop, manufacture, and package single-use instruments and disposables in addition to providing services for the assembly of electronic products.
It was a fortunate coincidence that J.P. Morgan got in touch with Nexcore in December of 2016 when they did so for the first time. In New Hampshire, Nexcore was interested in acquiring another medical device life sciences firm to add to its portfolio.
In order for Nexcore to successfully execute its purchase, J.P. Morgan, together with a private equity company and a third-party nonbank lender, assisted in providing the necessary funds. The $9.5 million loan received by the company was split into two parts: a working capital facility loan in the amount of $5 million and a term loan in the amount of $4.5 million.
As soon as the transaction was finalized, J.P. Morgan became J.P. Morgan’s only provider of treasury services for Nexcore. Nexcore is continuously working to grow its influence in the medical device market, and its partnership with the company helps position it to take advantage of prospective acquisition prospects. Therefore this lifesciences firms overcoming challenges
3. ContraVir
ContraVir is a publicly traded firm that is in the process of creating a portfolio of chemicals to treat a variety of illnesses, including herpes zoster and hepatitis B. (shingles). In addition to its headquarters in Edison, New Jersey, ContraVir also maintains a research facility in Edmonton, Alberta, Canada, as well as a biotechnology center in Doylestown, Pennsylvania, which is located just outside of Philadelphia.
The first spark that ignited the connection between ContraVir and J.P. Morgan was the two companies’ shared dedication to BioNJ, a New Jersey-based nonprofit that promotes innovation in biosciences. In addition to gaining knowledge about the assistance that J.P. Morgan provides to early-stage life sciences firms via BioNJ, ContraVir was also able to establish some links with the Healthcare Investment Banking team at J.P. Morgan.
ContraVir was not actively seeking a new bank at the time; nonetheless, it was open to a meeting with the J.P. Morgan Lifesciences team to explore how the firm might assist the business and help it expand. The meeting was to take place in order to discuss how the firm could help the company.
ContraVir’s finance team accepted J.P. Morgan’s invitation to attend a demo of the world wide web portal J.P. Morgan Access after learning about the depth and breadth of J.P. Morgan’s offerings for the life sciences firms. J.P. Morgan extended the invitation.
In the end, it was the combination of the company’s huge resources and comprehensive treasury solutions that so pleased ContraVir that they decided to transfer to J.P. Morgan as their principal operating bank. ContraVir saw an opportunity presented by the presentation of J.P. Morgan Access to enhance its cash reporting and operational efficiency while gaining significant insight into its own data.
In addition to its ongoing relationship with the J.P. Morgan investment banking team, ContraVir recognized that it could grow alongside the company as it progresses through the various stages of the life sciences business cycle. This was made possible by gaining access to the expertise of J.P. Morgan.
Bottom Line:
In a world where data is treated as oil, lifesciences firms overcoming challenges with regard to ensuring data security. Other issues include maintaining regulatory compliance, program management, etc. In order to deal with such issues, life science firms have to stay updated about the latest technological inventions and prevent cyber crimes of invading data. We hope you found the information mentioned in our blog helpful and received important insights regarding how lifesciences firms overcoming challenges.
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