Nov 15, 2016

Capstone Partners Advises Avomeen Analytical Services on its Recapitalization by High Street Capital

Philadelphia, PA – Capstone Partners LLC, a leading investment banking firm, announced that it has successfully advised Avomeen Analytical Services (“Avomeen”) on its recapitalization with High Street Capital. The terms of the deal were not disclosed.

Avomeen specializes in providing outsourced formulation and product development life cycle support, and analytical laboratory and pharmaceutical testing services. With an exceptional scientific staff including 22 Ph.D. chemists, the Company has developed an unparalleled track record for successfully tackling the most complex analytical problems related to product development, formulation, quality and manufacturing. The Company offers a broad array of solutions for chemical analysis, method development and validation, deformulation (reverse engineering), product development, extractables and leachables analysis, stability and release testing and clinical trial manufacturing. Widely recognized as a leading expert in deformulation analysis, Avomeen has unique capabilities to separate, identify and quantitate ingredients in complex formulations. These intricate techniques are used to provide solutions involving competitive product analysis, batch-to-batch product variation, product failure and product contamination as well as the development of generics for patent expiring pharmaceutical products.

“Avomeen has experienced rapid organic growth but we are only scratching the surface on the opportunity. We have reached a key inflection point and it’s time to get the word out on our unmatched ability to provide customized solutions for complex problems. I am quite pleased to be partnering with High Street Capital,” commented Avomeen Founder Shri Thanedar, Ph.D. “The expertise and capital that High Street brings to the table will enable us to expand and professionalize our business development efforts. We believe our deep scientific expertise and consultative approach will be well received as we secure new clients and enter new markets.”

The Capstone M&A team of Eric Williams, Managing Director, and Mark Surowiak, Director, based in Philadelphia, PA, managed the transaction on behalf of the Company. “Avomeen has developed an impressive and diverse client base and is well positioned to benefit from the increasing pipeline of drugs under development, the growing proportion of new drug candidates from mid-size and emerging pharma – which by necessity rely on outsourced providers more frequently than big pharma – and the increasing emphasis on quality and testing in life sciences and other sectors,” commented Eric Williams. “The market is rewarding companies that can develop innovative and effective solutions to satisfy the increasing complexities of drug development, manufacturing and testing.”

“We expect the robust M&A activity within the Pharmaceutical Outsourcing industry that we’ve seen in 2016 will continue in 2017,” added Mark Surowiak. “Publicly traded outsourced providers are trading at high valuations and are aggressively pursuing acquisitions. Additionally, private equity is attracted to the sector due to its solid fundamentals, high fragmentation, strong growth dynamics and attractive exit options for businesses that achieve scale.”