As investors we’ve been conditioned to expect the latest and greatest advancements in biotech and pharmaceutical development to come out of the research labs of Stanford or John Hopkins. Or roll out from the corporate campuses of Pfizer or Novartis. So when a small speciality lab in Victoria starts making waves in the industry a certain amount of skepticism is to be expected.
ImmunoPrecise Antibodies (TSX:V – IPA) was founded in 1989 by Robert Beecroft with a very specific proprietary method for producing antibodies – a core requirement for biotech research projects across a wide spectrum, including virtually every R & D project related to the development of pharmaceuticals. Fast forward 25 years and this profitable private company was faced with a decision. Find a buyer for founders looking to retire or perhaps even wind down operations. Instead they chose to pursue a brand new business model. One that sought to rapidly expand capacity, as well as develop a full-service antibody production and discovery offering. The challenge as always, was capital – where to find it today, tomorrow and for the future.
Enter capital advisory specialists Colin Bowkett and Paul Andreola of Venturewerx in Vancouver. Having watched virtually an entire generation of Canadian tech and biotech companies swallowed up and spit out by the Silicon Valley inspired Venture Capital industry, they recognized that a mature, albeit small, company with good EBITDA could carve a different path. Drawing on their experience in the tech sector they were able to coordinate a reverse takeover of a TSX:V shell that allowed ImmunoPrecise’s founders and original shareholders to retain a significant stake in the new PubCo, while providing the financing needed to take ImmunoPrecise to the next level.
Fast forward 18 months and IPA has followed through on the ambitious business plan to be partner-of-choice for pharmaceutical companies seeking treatment for major diseases. They are now arguably the industry’s first full-service antibody discovery provider. Acquisitions and organic growth have resulted in a significantly expanded operation in Victoria, and the addition of two speciality operations in the Netherlands. Revenues are on track up 400% over the previous year, quarter over quarter growth is up 30% in Q3 2018 alone, and a recent financing was over-subscriber by almost 100%.
Perhaps most importantly is the addition of a new dynamic CEO Dr. Jennifer Bath. Dr. Bath brings experience with biotech on an international scope and scale, taking what was already an impressive growth plan and pushing it to new heights. Her team, including CSO Dr. Deanna Dryhurst, recently announced a multi-year development agreement with a top 15 global pharmaceutical company that remains undisclosed at this point. And negotiations with other top 10 global companies are currently underway.
And maybe for Canadian investors IPA is an acknowledgement that we don’t always need to look south or at the billion dollar mega-companies for exposure to the next generation of biotech success stories.
