Audax Makes Growth Investment in Pyramid Laboratories
April 20, 2023|John McNulty
Audax Private Equity has made an investment in Pyramid Laboratories, a drug product contract development and manufacturing organization.
Pyramid specializes in large molecule therapeutics and provides formulation development, analytical and stability testing, and aseptic fill-finish manufacturing services which includes filling, packaging, and labeling sterile drug products into their final containers, such as vials, syringes, or cartridges, in a sterile environment to prevent contamination.
Large molecule therapeutics, also known as biologics, are a type of drug product made from living cells and biological molecules such as proteins, antibodies, and nucleic acids. These drugs are typically larger and more complex than traditional small-molecule drugs and are often used to treat complex diseases such as cancer, autoimmune disorders, and genetic disorders. Biologics are produced using specialized manufacturing processes that involve the use of living cells and can be more challenging and expensive to produce than small-molecule drugs.
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Pyramid was founded in 1988 by CEO Medhat Gorgy and it operates three facilities with a total of 90,000 sq. ft. in Costa Mesa, California. Pyramid, in partnership with Audax, has committed capital to complete a planned expansion of these facilities that will grow its vial-filling capacity by more than 30% and syringe filling by more than 50%, which is expected to come online later this year.
“We are excited to partner with Audax as we embark on an exciting new chapter in our growth story,” said Mr. Gorgy. “Audax’ track record of partnering with founders to accelerate growth in the healthcare space will strengthen our ability to service our existing customers, build new commercial relationships, and enhance our service offerings while maintaining our commitment to quality.”
“Pyramid has established itself as a best-in-class partner to pharmaceutical companies globally for their development, testing, storage, fill-finish, and analytical testing needs,” said Keith Palumbo, a co-president and senior managing director at Audax. “We have been impressed with the organization and team that Medhat has built over the last 35 years and are excited to partner with Pyramid on this next phase of growth.”
“Pyramid is a longstanding leader in the contract development and manufacturing space, and we look forward to this partnership with Medhat and his team, as the business scales its offering, capacity, and geographic reach,” said Steve Weaver, a managing director at Audax.
Audax has experience in the pharmaceutical services sector with previous investments in Altasciences, a pre-clinical CRO, and Advarra (formerly Chesapeake IRB), a provider of independent institutional review board services to pharmaceutical companies and research institutions.
Audax Private Equity invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. The firm has invested over $9 billion in 160 platforms and over 1,200 add-on companies. Sectors of interest include business and consumer services; energy; healthcare; technology, media, and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.
Fairmount Partners was the financial advisor to Pyramid on this transaction and William Blair advised Audax.
Audax Private Equity has made an investment in Pyramid Laboratories, a drug product contract development and manufacturing organization.
“Pyramid has established itself as a best-in-class partner to pharmaceutical companies globally for their development, testing, storage, fill-finish, and analytical testing needs,” said Keith Palumbo, a co-president and senior managing director at Audax. “We have been impressed with the organization and team that Medhat has built over the last 35 years and are excited to partner with Pyramid on this next phase of growth.”
“Pyramid is a longstanding leader in the contract development and manufacturing space, and we look forward to this partnership with Medhat and his team, as the business scales its offering, capacity, and geographic reach,” said Steve Weaver, a managing director at Audax.
