Algorithme secures loan to fund diversification and growth

CRO Algorithme Pharma has announced plans to grow and diversify its business after securing support of Canadian financiers.

The support is in the form of a loan from Investissement Quebec (IQ) and investment from existing company shareholders and will be key to expanding Algorithime’s early-stage research business according to CEO Chris Perkin.

 

[This loan] will allow the Company to implement the strategies needed to position itself as a leading early stage clinical contract research organization.

 

Perkin went on to say that this plan involves adding new capabilities, entering new geographical and research markets, but did not go into specifics.

 

At present Algorithme has two clinical research facilities in Canada in Montreal and Laval and a foothold in Europe and an office in Japan though its sister organisation, Merthyr Tydfil, Wales-headquartered Simbec Research.

 

Alan Woodward, business development manager at Simbec, reiterated that the new financing will be used to fund expansion, telling Outsourcing-pharma.com this will include increasing Phase I first-in-human capacity with the addition of a new laboratory at Algorithme’s Montreal site.

 

[The additional funds] will also be used to invest in new software such as an electronic data capture (EDC) and Document management system and additional staff from increased business development to scientists and managers.”

 

On the acquisition trail

 Woodward also spoke about Algorithime’s wider expansion plans, explaining that the contract research organisations (CRO) is “actively pursuing alliances that will extend our capabilities or global reach and in the next 18 months or so we anticipate an acquisition in either US or Europe.”

Algorithme’s last acquisition spree in August 2008 saw it acquire both Simbec and a clinical research centre in Baltimore, Maryland in the US.