eureKING Launches as SPAC for Biologics CDMOsBy
eureKING, a special purpose acquisition company (SPAC) focused on investing in biologic-based CDMOs, mainly in Europe, has launched an initial public offering on Euronext Paris with the aim of raising EUR 150 million ($158 million) through an offering of 15 million shares at EUR 10 ($10.42) per share
eureKING was founded in March 2022 by eureKARE, an investment firm focused on financing and building companies in fields of synthetic biology and the microbiome, and seven industry executives, including its CEO, Michael Kloss, former Chairman and CEO of Panasonic Healthcare and former Chairman and CEO of Ascencia Diabetes Care (formerly part of Bayer), and Gérard Le Fur, Chairman, eureKING, and former CEO of Sanofi-Aventis. Also among the founders is Christophe Jean, Strategic Partner of the private equity fund, Oraxys Environment, who held several executive positions in Novartis, Ipsen, and Pierre Fabre,
eureKING’s plan is to invest in biologics CDMOs in three main areas: (1) the production of biologics, in particular new generations of monoclonal antibodies or complex proteins; (2) the production of cell and gene therapies; and (3) the production of live biotherapeutics (with applications in the microbiome).
The company says it will seek to invest in biopharmaceutical CDMOs that can offer a variety of services across the biopharmaceutical value chain, including drug-product development (e.g., sourcing and specimen manufacturing), drug-substance manufacturing (e.g., extraction and synthesis) and drug-product manufacturing (e.g., formulation and commercial production)
It cites the fragmented nature of the biologics CDMOs market, with large players occupying about 27% of the market, and the opportunity to target other CDMOs, broadly citing the market consists of thousands of companies, two-thirds of which have revenues of less than $50 million.