New Harbor Capital Completes Recapitalization of Portfolio Company LGM Pharma to Support Its Continued Growth
New Harbor Capital (“New Harbor”) announced today the recapitalization, through a single asset continuation vehicle, of LGM Pharma (“LGM” or “the Company”), a provider of comprehensive API sourcing and drug product contract development and manufacturing (“CDMO”) solutions to the pharmaceutical, biotechnology, and compounding pharmacy end markets. In partnership with Origami Capital Partners (“Origami”), the transaction positions LGM for the next phase of continued and accelerated growth.
New Harbor first partnered with LGM Pharma in November 2017 when the business was primarily engaged in providing procurement and distribution services of quality cGMP active pharmaceutical ingredients (“API”) for both the compounding pharmacy market, as well as specialized, mid-size and emerging pharma and biotech companies. Over the last five years, through both acquisitions and organic growth initiatives, LGM has continually enhanced the Company’s supply chain services offering while expanding to provide comprehensive CDMO services, including preclinical through commercial drug product manufacturing, formulation development, process development, analytical testing, and regulatory submission support services. LGM’s global supply chain services business serves as a critical market-facing pharma services platform unifying scientific expertise, strategic sourcing, and regulatory capabilities for the drug manufacturing community across multiple drug modalities. LGM’s complementary CDMO operations provide small molecule oral solid dosage (OSD), liquids, semi-solids, and suppository drug products with expertise in DEA Schedule II – V controlled substances, serving life sciences companies delivering novel and existing therapeutics through three facilities in California, Texas, and Colorado. These operations provide an integrated approach to the market with distinct core competencies addressing areas of growing demand from pharma organizations.
As a novel platform in the pharma services and CDMO space, LGM Pharma has experienced significant growth across its two complementary business lines. With additional capital to support both organic and inorganic growth initiatives, LGM Pharma continues to build upon its vision to unify differentiated capabilities across API sourcing, development, and manufacturing to deliver high-quality therapeutics, enable greater customer profitability, and solve for traditional supply chain challenges.
“Since our initial partnership, and through significant investments in team, quality, and facilities, LGM has evolved to be a valued partner in the markets it serves,” said Jocelyn Stanley, Partner at New Harbor. “We are proud of the success LGM has achieved to date and excited to continue our partnership through this next season of growth, while also facilitating an attractive return of capital to those investors seeking liquidity.”
“LGM is thrilled to extend our partnership with New Harbor Capital and to join forces with Origami,” said Dr. Prasad Raje, CEO of LGM Pharma. “Their confidence and investment in LGM’s growth enable us to enhance our commitment to delivering the highest quality pharmaceutical products and services. This collaboration will expedite the expansion of our pharmaceutical capabilities, reinforcing our novel platform that spans API sourcing and supply chain management, turnkey drug development, and ongoing commercial manufacturing. Together, our sustained investments in quality and innovation will drive LGM’s and our clients’ growth and success in the industry.”
“We are excited to partner with New Harbor Capital and support LGM Pharma’s growth and talented management team as they continue to expand their unique offering of pharmaceutical distribution, manufacturing and analytical services,” stated Julie Klaff, Partner at Origami. “This investment aligns with Origami’s commitment to providing creative capital solutions while partnering with best-in-class operators.”
Baird served as exclusive financial advisor and placement agent and Kirkland & Ellis and Reed Smith served as legal advisors to New Harbor.
About LGM Pharma
LGM Pharma is a contract development and manufacturing organization (CDMO) providing comprehensive Active Pharmaceutical Ingredient (API) sourcing and drug product CDMO solutions to the pharmaceutical, biotechnology, and compounding pharmacy industries. LGM Pharma assists clients in managing all phases of the drug product development process, from API sourcing through to commercialization. LGM Pharma’s extensive global network of qualified API partners enable clients to optimize supply chain management and distribution. Services include API sourcing and procurement, formulation development, analytical method development, method and process validation, ANDA/NDA submission, stability studies, and raw material and finished product testing and packaging. LGM Pharma is committed to quality and has a track record of providing expert regulatory and market intelligence services to its clients. The company is focused on customer service and customized solutions, providing clients with a comprehensive one-stop manufacturing solution that reduces risk, increases efficiency, and accelerates the path to commercialization. For more information, visit www.lgmpharma.com.
About Origami Capital Partners
Founded in 2008, Origami Capital Partners manages private capital that offers structured, patient and flexible capital by first listening and then collaborating to craft bespoke solutions. Headquartered in Chicago, Illinois, the firm manages committed institutional capital and has completed over 135 transactions and is managing out of its fifth fund with total AUM of $1.3B. For additional information, please visit www.origamicapital.com.