Singapore’s SWFs Acquire ‘Significant’ Stake in Novotech

Novotech, a globally recognised full-service biotech specialist clinical research organisation (CRO), on Tuesday said that affiliates of Singapore’s sovereign wealth funds – GIC and Temasek – have signed binding agreements to acquire a significant stake in the company, with the additional capital earmarked to accelerate its global growth.

Existing investor TPG will also reinvest through its TPG Asia fund. Though the financial terms of the deal were not disclosed, reports suggested that the value of the deal of the clinical trials business owned by private equity giant TPG Capital at more than $3 billion.

Novotech, headquartered in Singapore with a global presence across more than 30 offices, is one of the world’s leading full-service clinical CROs, providing biotech and small- to mid-sized pharmaceutical companies with an accelerated path to market.

Today, the company has a global footprint across the Asia-Pacific region, North America and Europe, and partnerships with more than 5,000 trial sites. Novotech has a leading position in the most innovative areas of clinical research such as cell and gene therapies, radiopharmaceuticals and mRNA trials.

The reinvestment by TPG Asia and investment from GIC and Temasek will allow Novotech to pursue further organic growth and transformative M&A opportunities. This is part of Novotech’s ambition to become the first truly global biotech-focused CRO.

New Investments Welcomed

Novotech CEO Dr John Moller welcomed the new investment and said the company was uniquely positioned to continue its growth in the Asia Pacific region, where demand for clinical trials is forecasted to grow at 15% a year, in addition to focused expansion in the US and Europe.

“Novotech is already on its way to be a major global player in the CRO space, with 3,000 employees and experience across more than 6,000 clinical projects and we are excited by the new support of GIC and Temasek, and the continued support of TPG, as we continue to scale the business while maintaining our high-quality standards,” he said.

Novotech has a commanding presence in the Asia Pacific region – which is only growing in popularity for global trials as the trend towards outsourcing continues, particularly among biotechs – and have made significant gains in the US and Europe through acquisitions.

“This investment will ensure we can continue our record of winning a growing share of larger, multi-region trials, particularly ones with a center of gravity in Asia, and it will also enable us to pursue larger, transformation acquisitions as our industry inevitably consolidates,” he added.

Joel Thickins, Co-Head of TPG Asia and Co-Managing Partner of TPG Capital Asia, said that Novotech’s growth and performance has been outstanding over the years, and since their investment in 2017, Novotech has grown from a 300-person organisation operating predominantly in Australia and New Zealand and some parts of Asia, to now a 3,000-person organisation with a global presence.

TPG has a long history of partnering with management teams to deliver long-term value creation, and by re-investing through TPG Asia, we are excited to continue the journey with Novotech to build something that is truly unique, he said.

TPG Asia has a strong track record investing in healthcare across Asia-Pacific through its platform-building strategy and regional presence. Other select healthcare investments include iNova, Manipal Hospitals, One Healthcare Asia, Pathology Asia and United Family Healthcare.

Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, said that Novotech’s proven track record of delivering high-quality outcomes for its biopharma customers has taken them beyond APAC to global markets.