NuChem raises C$37.6m for acquisition of OmegaChem

Montreal-based NuChem Sciences has acquired Levis, Quebec-based OmegaChem, creating a new contract research organization in drug discovery in chemistry.

Montreal-based NuChem Sciences has acquired Levis, Quebec-based OmegaChem, creating a new contract research organization in drug discovery in chemistry. This acquisition was backed by an investment of C$37.6 million from Fonds de solidarité FTQ, Investissement Québec and BDC Capital. HarveyCorp purchased the buildings.

PRESS RELEASE

MONTRÉAL, Aug. 17, 2021 /CNW Telbec/ – NuChem Sciences, a drug discovery in chemistry contract research organization (CRO) located in Montréal, today announced the acquisition of OmegaChem of Lévis, Québec. As a result of this transaction, the new group formed by the two companies becomes Canada’s largest CRO in drug discovery in chemistry.
This acquisition was made possible by a total investment of $37.6 million from Fonds de solidarité FTQ ($17.4 million), Investissement Québec ($10.1 million) and BDC Capital ($10.1 million), in addition to HarveyCorp’s purchase of the buildings.

“We’re proud to join forces with OmegaChem to create the largest CRO in drug discovery and chemistry in Canada, with 200 experienced scientists and support staff,” said NuChem president Marc LeBel, Pharm.D. “The new group will strengthen the position of both companies as they continue harnessing their expertise to run their operations.”

“We’re witnessing the creation of a promising company that will be a leader in its field,” said OmegaChem president François Laflamme. “Since both organizations are intensively recruiting right now, the transaction will not result in any job losses.”

“With a new integrated service offer and their capacity for complex projects, NuChem and OmegaChem are now better placed to face growing global competition. This transaction speaks to the vitality of the teams led by Marc LeBel and François Laflamme, as well as the Québec life sciences sector as a whole, and once again demonstrates our commitment to supporting Québec healthcare companies with development capital,” said Dany Pelletier, Executive Vice-President for investments at the Fonds de solidarité FTQ.

“We are proud to be a part of this acquisition and to partner once again with NuChem to fuel its growth,” noted Investissement Québec President and CEO Guy LeBlanc. “In the process, we are helping to create a major Québec player in the biotech and pharmaceutical industries in cooperation with our financial partners and to consolidate Québec’s expertise in the crucial field of drug discovery.”

“BDC Capital is proud to contribute to the creation of the largest contract research organization in drug discovery in chemistry in Canada, and by extension, to research and development in life sciences. We are thrilled to support the management team in achieving their growth objectives,” said Patrick Latour, Senior Vice-President, Growth & Transition Capital at BDC Capital.

Drug discovery involves the design and synthesis of new molecules with biological activity or potential therapeutic efficacy and that ultimately become new drugs for patients. Its specific objective is to optimize the biological activity of so-called “hits” or “lead compounds,” identified by high-throughput screening or synthesis through close collaboration between multidisciplinary teams in chemistry, cell biology, biochemistry and pharmacology.

Fasken, BCF and Blakes acted as legal counsel for, respectively, NuChem Sciences Inc., OmegaChem Inc. and the Fonds de solidarité FTQ.

About NuChem Sciences
NuChem Sciences offers a variety of services to support international biotech and pharmaceutical industries in their efforts to identify and optimize preclinical candidates in the area of small molecule drug discovery and early chemical development. Since its inception in 2011, NuChem has contributed to the discovery of several new drug candidates that have progressed to human clinical trials.