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Case Study

Reaction Biology

Preclinical contract research organization (CRO) providing end-to-end drug discovery and early development assay services.

Year of Investment

2021

Deal Type

Minority Recap

Status

Realized (acquired by Copeba in 2022)

Vertical

Pharma/Medtech Outsourcing

Location

Malvern, PA

Gloved researcher adjusting a microscope stage amid glass beakers and test tubes in a lab.

Investment Thesis

Market Tailwinds

Growing demand for outsourced preclinical services.

Leading Platform

Niche market focus and strong reputation among pharma/biotech customers.

International Growth Lever

Opportunity to scale globally with overseas sites.

Value Creation

Cap Table Dynamics

Provided liquidity to overseas investors to help clean up shareholder base.

Exit Positioning

Led process of retaining optimal investment banking partner to position for strategic sale in 2022.

1315 Capital quickly got up to speed on the nuances of our business, and the specific opportunities and issues we faced. We had an exceedingly difficult international transaction we were working on to buy out a foreign shareholder that involved months of complex negotiation. 1315 Capital completed the transaction and turned out to be the perfect partner we needed, as we were able to leverage their healthcare industry experience and network to help navigate the company to a successful exit.

Matt Oristano

CEO of Reaction Biology

Researcher in a lab coat and gloves recording results on a tablet beside a microscope and monitor.

1k+

Global Clients

30%

Revenue CAGR

2k+

Validated Assays

760+

Kinase Targets - Largest Panel in Industry

Key Highlights

  • 2001: Spun out of University of Pennsylvania
  • 2004: Matt Oristano joins as CEO
  • 2019: Company acquires ProQinase
  • 2020: 1315 Capital invests in Company
  • 2022: Company acquired by Copeba

Results

Reaction Biology, being a leading provider of end-to-end drug discovery assay services with a global reputation for being experts in human kinase and epigenetic drug discovery assay services and a strong financial profile of 30%+ revenue CAGR and 30%+ EBITDA margins, attracted the attention of multiple acquirers across strategics and financial sponsors. Ultimately, the company was acquired by Copeba.

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