Liverpool ChiroChem Limited

Product: 
Technology Growth
Status: 
Open
Sector: 
Pharmaceutical R&D
Aim of funding: 
Growth
HMRC Advance Assurance received: 
Yes

Liverpool ChiroChem Limited

Description: 

Liverpool ChiroChem (LCC) operates in the supply chain of pharmaceutical research and development (R&D), supplying specialist chemical Chiral building blocks that enable laboratory based researchers to discover and build new drug molecules.  Specialist Chiral building blocks, such as these, are of importance and of financial value to pharmaceutical R&D.  The demand for these important compounds is reflected in a global annual market of $5.1billion*.

There is already in existence an established global demand for Chiral compounds in the pharmaceutical sector, which requires a supply of affordable Chiral building blocks.  Such Chiral building blocks are of significantly higher value due to their significantly increased purity than their racemic equivalents (where both left and right hand versions of the building blocks are mixed up) due to the difficulty of their production by traditional methods.  LCC can purchase low value chemicals a $7/g and in just three chemical steps transform them into a high value, specialist chiral building block, which has a current market value of $477/g.  Even selling at a 25% discount to the current market value, LCC can generate a gross margin of 97.8%.

*(Source: Chiral Technology: A Global Strategic Business Report)

Opportunity: 

The primary objective of LCC is to become the supplier of choice for specialist chiral building blocks to the pharmaceutical research community.

LCC is based upon three fundamental facts:

  • The pharmaceutical industry requires a continual feedstock of new drugs;
  • Drug manufacturers require a continual supply of new chemical building blocks in order to discover and produce new drugs;
  • LCC has exclusive rights to a novel catalytic method that allow efficient production of specialist chiral building blocks that have long been highly desired but are largely inaccessible using traditional chemical methods, which lack the efficiency to be commercially viable. LCC can supply in low volumes, in short lead times, whilst retaining a >95% gross margin. 

We envisage an exit for our investors via a trade sale within five years, targeting a return in excess of 5x capital invested. Technological advances in terms of speed, efficacy, use of automation, and increased throughput, are all expected to play a major role in fuelling demand for the Company’s technology in the medium term, particularly from the pharmaceuticals industry as it seeks the extension of patent protection for their drugs and associated products.

Information on this webpage relates to and is provided by Deepbridge Advisers Limited.

The content of this webpage should not be construed as financial advice. Any decision to invest should be made only on the basis of the relevant documentation for each investment. Past performance is not necessarily a guide to future performance. The value of an investment may go down as well as up and investors may not get back the full amount invested. Investments in small unquoted companies carry an above-average level of risk. These investments are highly illiquid and as such, there may not be a readily available market to sell such an investment. Deepbridge Capital LLP, Deepbridge Advisers Limited and Enterprise Partners LLP (together "the Sponsors," or "Sponsor) do not provide specific individual advice on the suitability of investments with regard to a potential investor's individual circumstances, risk tolerance or investment objectives and investors should seek independent financial advice if they are in any doubt whether a product is suitable for them.