Bone graft company ApaTech raises $45M

Investment

Bone graft company ApaTech has concluded a financing round of $45 million, led by private equity firms 3i plc and HealthCor Partners. The investment will cover the costs of ApaTech’s commercial resources and product development, as well as expanding its manufacturing capacity. The funds will also contribute to the development of a new facility in Elstree, UK.

ApaTech is developing Actifuse, a silicate-substituted calcium phosphate bone graft material with osteo-conductive and osteo-stimulatory properties. Its commercialisation in 21 countries generated $15.5 million in 2007. The company was formed in 2001 on the basis of research and intellectual property from Queen Mary University of London and the University of Cambridge, and retains pipeline agreements with founding inventors, including Professor William Bonfield, and with Queen Mary.

Simon Cartmell, CEO of ApaTech, said: “These funds allow us to continue the successful development of ApaTech into a world leading orthobiologics company. We see significant potential in Actifuse and the portfolio of new technologies we are developing and I am delighted we have been able to secure investment from, and involvement of, two world class financial institutions who clearly share our vision of the future.”

Nigel Pitchford, a partner in 3i’s healthcare team, said, “We’re proud to have been the long-term lead investor in ApaTech, from spin-out in 2001 through to the commercial success that it is today. 3i is delighted to be able to invest substantial new funds and introduce an excellent new partner in HealthCor. Together we will provide ApaTech with the strong financial platform it needs to execute on the growth opportunity and become the worlds' leading orthobiologics company.”

Michael Mashaal, Managing Director of HealthCor, said: “ApaTech clearly has the opportunity to grow rapidly over the next few years and we are delighted to be joining the ApaTech team at this exciting time. This funding will allow the company to execute on its strategy as key differentiating clinical data becomes available.”

The funds will also contribute to a $13 million development which includes the lease of 32,000 square feet of office space, manufacturing and development activities at Centennial Park in Elstree, UK. Cartmell said: “The Elstree site is an excellent location for ApaTech and we are all looking forward to moving into the new facility which will be a world class manufacturing and corporate headquarters, reflecting the company’s values and ambitions.”