In contrast to the fluctuating global M&A market, the life sciences and health tech industry saw a significant uptick in deal-making throughout 2023, showcasing remarkable resilience and growth.
2.5.2024
Strong momentum in life sciences and health tech industry: Castrén & Snellman sees a significant uptick in deal-making
Karlo Siirala, Hanna Paloheimo, Sakari Lukinmaa, Tero Tuomisto & Antti Kaakkola
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Despite initial setbacks due to the pandemic, the sector has witnessed a resurgence in mergers and acquisitions, and investments from both private equity and venture capital firms.
Notably, landmark transactions like Novo Nordisk’s USD 16.5 billion acquisition of Catalent and Pfizer’s USD 43 billion merger with Seagen underscore the magnitude and momentum of deal activity within the industry.
Castrén & Snellman’s recent transactional work vividly reflects this heightened industry activity. In 2023 and 2024, our firm has been deeply immersed in facilitating mergers and acquisitions, securing funding and refinancing and supporting manufacturing projects for innovative companies, investors and entrepreneurs in the health tech and life sciences sphere.
Our recent cases showcase Castrén & Snellman’s expertise in navigating complex legal matters within the life sciences and health tech industry:
- Advising Mérieux Equity Partners’ leveraged buyout of Labquality, a Nordic player specialised in EQA, CRO activities and regulatory affairs, with a strong local presence in Central and Eastern Europe
- Advising BYG4Lab and Keensight Capital on BYG4Lab’s acquisition of Finbiosoft, an innovative software company founded in 2011 with a mission to help laboratories reach higher quality and better efficiency
- Advising Keensight Capital, a leading growth buyout investor, on the Finnish legal aspects of the combination of Biovian and 3P Biopharmaceuticals, two leading biologics contract development and manufacturing organisations (CDMOs) backed by Keensight Capital, to establish 3PBIOVIAN, a new pan-European leader in its field
- Advising DigiTx Partners, a venture capital firm specialised in the digital health space, on the USD 10 million series A funding round of CardioSignal, the developer of the first technology to detect major heart diseases without specialised medical hardware
- Advising Inventure, Tesi and Presidio Ventures on the EUR 13.7 million series A funding round of Algorithmiq, a growth company developing quantum computing algorithms and solutions for drug development and discovery
- Advising Biovian, a globally operating GMP (Good Manufacturing Practice) contract development and manufacturing organisation (CDMO) of biopharmaceuticals, on its EUR 50 million manufacturing facility project in Turku, Finland
- Advising Biovian on the debt refinancing initiative and new funding package with Eurazeo to support organic growth and GeneCity facility expansion
- Advising Voisin Consulting Life Sciences on the acquisition of MedEngine, a leading medical science agency in the Nordics.
With favourable economic conditions driving acquisitions, continued interest from private equity and venture capital firms, and the strategic importance of acquisitions for fostering growth, we anticipate continued vibrancy in the industry through the remainder of 2024. In addition, advancements in technology and innovation within the industry are expected to fuel further investment and transactional activity.
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Latest references
Vapaus Bikes Finland – Series A funding round
We represented Vapaus Bikes Finland Oy, a company offering employee benefit bikes, in its international EUR 10 million Series A funding round. The investors behind the funding are private equity investors Shift4Good and Superhero Capital Ltd as well as Tesi together with the European Guarantee Fund of the European Investment Bank. The equity-based funding will support the company’s international expansion, software development, platform automation, and the growth of its concept for the second-hand market of bikes. Vapaus Bikes Finland is at the forefront of sustainable mobility services and has been a pioneer in the Employee Benefit Bikes sector since late 2020. It has been ranked among Finland’s fastest growing companies. Shift4Good is an impact venture capital fund focused on the decarbonisation of the transportation sector. Tesi (officially Finnish Industry Investment Ltd) is a state-owned, market-driven investment company that invests in venture capital and private equity funds and directly in Finnish startups and growth companies.
Case published 21.8.2024
Tesi – Investment in Sisu Auto
We advised Tesi (Finnish Industry Investment Ltd) in its investment in the heavy duty vehicles company Oy Sisu Auto Ab. With this investment, Tesi became an owner in the company with a share of 24.4 per cent. Sisu Auto is a pioneer in the Nordic market in the development of heavy duty vehicles. Sisu’s core competences are in the product development and production of trucks and military vehicles. Tesi is a state-owned, market-driven investment company that invests in venture capital and private equity funds and directly in Finnish startups and growth companies. The investments managed by Tesi total 2.1 billion euros.
Case published 19.8.2024
Bionto – EUR 4 million seed equity funding
We advised Bionto Oy, a company offering industrial bio-solutions, in a financing arrangement where Korpi Capital made a EUR 4 million seed equity investment in the company. The execution of the investment requires that certain conditions specified in the investment documentation are met. Bionto is a Finnish early-stage biotechnology company that develops and produces sustainable, profitable and safe biotechnological solutions to support the green transition, business objectives and societal goals of various industrial operators.
Case published 8.7.2024
BHP – Alliance agreement with Kingsrose Mining Limited
We acted as the Finnish legal advisor for BHP in connection with an exploration alliance agreement entered into between BHP and Kingsrose Mining Limited under which BHP (through a wholly owned subsidiary) will provide funding for regional mineral exploration across areas of interest in Finland. As part of the arrangement announced on 22 May 2024, BHP and Kingsrose entered into two exploration alliance agreements, focusing on nickel and copper exploration in specified regions in Finland and Norway. In Finland, the alliance agreement covers Kingsrose’s four exploration reservations at the Central Finland project in the Kotalahti Nickel Belt, a 400 kilometre long greenstone belt which hosts the past producing Hitura, Kotalahti and Enonkoski nickel mines. The alliances follow from Kingsrose’s successful participation in the BHP Xplor program, a global accelerator program targeting innovative, early-stage mineral exploration companies to find the critical resources necessary to drive the energy transition. BHP is the largest mining company in the world by market capitalisation, producing essential commodities through its assets, including iron ore, metallurgical coal, copper and nickel, and moving into potash.
Case published 4.7.2024