Oxford Capital and Finance Wales have jointly financed a £3.5 million funding round in BioMonde, an established and profitable wound care business. BioMonde has developed an innovative larval (maggot) therapy for hard-to-treat wounds which makes healing possible. The investment will be used to set up a US production plant and launch BioMonde in the US market.
Larval Debridement Therapy (LDT), also known as maggot treatment, is a long established method to clean chronic wounds which do not respond to other treatments. BioMonde has brought the therapy up to date by developing a patented bag delivery system. Its ‘BioBag’ product contains the larvae in a sterile bag. This greatly simplifies wound treatment and eliminates issues with loose larvae.
BioMonde sells over 35,000 treatments annually in the UK, Germany and the rest of Europe. It achieved revenues of £5 million in the past year. It has recently received approval from the US Food and Drug Administration to market the BioBag in the USA. The company intends to establish a production facility in the US. It is targeting initial US sales in the second half of 2014.
Colin Watts, Partner, Oxford Capital, said:
“Chronic wounds are a large and growing burden on healthcare systems, driven by ageing populations, diabetes and obesity. BioMonde’s innovative approach to larval therapy makes healing possible in chronic wounds that have proved resistant to other treatments. The market is forecast to grow at 10% annually. We believe BioMonde is the only company actively marketing LDT in Europe and it now has access to the vast US market.
“BioMonde is a highly cash generative and fast growing business. Once the US operation is established we believe it would be an attractive acquisition for a large healthcare company. The market has seen good levels of M&A activity in the wound care sector which we expect to continue.”
Gareth Kempson, Chief Executive Officer, BioMonde, said:
“This investment will enable BioMonde to drive the next phase of its growth and development, entry into the largest medical device market in the world. The US has many of the same chronic disease challenges of any health system but on a larger scale and we want to be well positioned to provide the clinical and cost effective response to issues presented by chronic wounds.
“We are very pleased to have Oxford Capital on board as an investment partner. It has an outstanding track record of helping businesses to establish themselves in overseas markets. Their knowledge and insight will be invaluable as we establish BioMonde in the US.”
Gareth Price, Portfolio Executive, Finance Wales, said:
“The management team at BioMonde are committed to achieving the company’s growth aspirations. They’ve already achieved some challenging milestones to build a strong business and create high-calibre jobs in Wales. The US is a key market for the company and successful expansion will play a pivotal role in BioMonde’s future.
“Finance Wales has been an investor in BioMonde since 2005 and we’re pleased to continue investing in this successful Welsh business with significant future potential. We’re also pleased to join forces with Oxford Capital again. Our relationships with investors like Oxford Capital pay dividends for Welsh businesses, attracting additional capital as well as valuable expertise.”
The company was advised on the fundraising by Gambit Corporate Finance LLP, which has a strong track record in life sciences and private equity transactions. The Gambit team was led by Geraint Rowe and Simon Marsden.
Simon Marsden, Director, Gambit Corporate Finance, added:
“BioMonde is a first-class business with a world-leading product and an excellent management team. We are extremely proud to have been involved with the company for a number of years and through a number of key milestones in its journey from an early stage technology spin-out to the dominant global player in its market. It’s fantastic to see an indigenous Welsh business becoming a true global market leader.”
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