Mubadala Investment Company, the Abu Dhabi-based sovereign wealth fund managing a global portfolio, is making a significant reinvestment in PCI Pharma Services (PCI).
Headquartered in Philadelphia, Pennsylvania, PCI provides clients with integrated end-to-end drug development, manufacturing and packaging capabilities that increase their products’ speed to market and opportunities for commercial success. PCI has over 450 successful product launches over the last five years and has over 50 years of experience in pharmaceutical services, helping bring to life innovation to improve patient access and outcomes.
Mubadala reinvests in pharma giant
The strategic investment also included Bain Capital as a new investor, as well as existing lead investor Kohlberg, who hold majority stakes in PCI along with Mubadala. Partners Group will also continue to support PCI with a minority investment.
This investment marks Mubadala’s continued support of PCI, following its initial investment alongside Kohlberg in 2020. Financial details of the private transaction were not disclosed, but the deal values PCI at US$10 billion, including debt, according to a Wall Street Journal report.
Camilla Languille, co-CEO of Private Equity at Mubadala, commented: “PCI Pharma Services has been one of our top-performing healthcare investments and is a testament to what can be achieved when long-term active investors partner with strong management teams to catalyse growth, create value, and deliver better patient outcomes worldwide.
“Our team will continue to focus on similar opportunities in the healthcare space as the sustained outsourcing of mission-critical but non-core activities by pharma companies aligns with our commitment to address global unmet clinical needs, reduce the cost of care to the system, and enable greater access.”
The new capital will enable PCI to focus on both organic and inorganic growth initiatives, including expanding its suite of services and geographic reach. Leveraging global growth trends in biologics and specialised drug therapies, PCI’s future investments will include expansion of existing sterile fill-finish of injectables and high potent and specialised manufacturing capacity.
The strategic investment will also enable PCI’s significant continued investment in the US, bolstering the nation’s critical pharmaceutical manufacturing and supply chain infrastructure.
Mina Hamoodi, Head of Healthcare at Mubadala, added: “Our reinvestment in PCI reflects our deep conviction in the company’s mission, leadership, and long-term potential.
“At this important juncture, we are delighted to welcome Bain Capital, an industry-leading healthcare investor with deep expertise in growing pharma services businesses, as a partner. We look forward to partnering with Bain and Kohlberg, and working closely with PCI’s outstanding management team, as the company enters its next chapter of accelerated growth.”
Salim Haffar, Chief Executive Officer, PCI, said: “PCI has embarked on a purposeful journey to transform itself into a global CDMO by executing its successful growth strategy, providing industry-leading customer experience, and offering innovative and integrated supply chain solutions.
“I am grateful for the ongoing support of our existing investors and enthusiastically welcome Bain Capital and their deep, global healthcare and life science capabilities and expertise. Together we will grow PCI’s commercial, clinical trial services, and development and manufacturing businesses to meet the future demands of our biopharmaceutical customers.”
Mubadala has a US$330 billion portfolio spanning six continents with interests in multiple sectors and asset classes.
