Private equity healthcare specialist ArchiMed is the lead investor in an alliance recapitalizing Corealis Pharma. ArchiMed and fellow investor, the Caisse de dépôt et placement de Québec, a pension fund in Canada, are joining forces with founders and management through this recapitalization. The partnership will further expand the drug development services Corealis offers as a Contract Development and Manufacturing Organization to small and medium-sized biotech and pharma companies. 
 
Based in Laval, Québec, Corealis is a CDMO in the Americas for the formulation and manufacture of solid dosage oral pharmaceuticals – tablets, capsules and granules – during preclinical and clinical pre-commercialization trials. 
 
“ArchiMed understood our strategy and offered an attractive investment thesis,” said Yves Roy, President of Corealis. “We turned down several higher offers from prospective suitors – trade and financial. Like us, ArchiMed understands the important potential of this industry and what it takes to get to the next level. As partners we’ll be able to capitalize on market leadership, aggressively expanding scientific strengths in R&D and our best-in-class regulatory-compliant manufacturing processes [such regulatory compliant processes are known as Good Manufacturing Practices or GMP].” Roy and fellow founders Patrick Gosselin and Yves Mouget retain a significant stake in Corealis.
 
“With Corealis’ expertise, CDPQ’s clout, and our knowledge of the international healthcare landscape, we’ve got the perfect combination to rapidly scale up in a fast-growing industry,” says ArchiMed Partner Robin Filmer-Wilson. Since 2019, Corealis’ sales registered average annual growth of more than 15 percent, a pace set to rise as drug formulation outsourcing increases in response to inflation and more demanding regulations. The deal was sourced through ArchiMed’s Pharma Services team, aided by ArchiMed’s MedTalents®, a global network of ArchiMed-associated senior healthcare executives who identify, facilitate and advise on deals and counsel portfolio companies.
 
MED III invests in small-cap healthcare sectors in Europe and the Americas, partnering with owners and managers. 
 
Fairmount Partners, a leading investment bank in the Pharmaceutical Services sector, served as exclusive financial advisor to Corealis.