Why we back Apex Molecular (Our thesis)
As a provider of specialist chemistry services to the pharmaceutical, biotechnology and applied chemistry sectors, Apex Molecular provides a specialist service to biotechnology, life-sciences, agritech and other technology companies.
As early-stage scientific innovation moves towards a virtual model, Apex is well placed to capture a growing market. For example, early-stage biotechnology companies now outsource a lot of their R&D requirements to specialist providers, which de-risks the business as they do not have to take on considerable investment in staff and equipment and can operate flexibly whilst benefitting from leading scientific expertise.
Our investment thesis in scientific innovation is built on flexible, agile approaches to scientific discovery. In early-stage ventures, pre-revenue innovation usually takes longer and costs more than anticipated. However, by utilising specialist teams, early-stage companies can benefit from the virtual discovery, maintain a clear cost base, and deliver on critical milestones.
What have the Company been up to
Based within the world-renowned site of Alderley Park, Cheshire, the experienced and rapidly growing team supports their global client base with a wide range of services from state-of-the-art facilities for scientific research.
Apex's flexible and intelligent approach to project design, combined with the insight and perseverance to every project, has made them a partner of choice within the industry.
The Company understands the importance of high quality and timely communication throughout a project and how to execute it flawlessly. Apex Molecular focuses on ensuring that clients projects are managed with minimal risk and delivered on time which is critical in drug discovery.
The business provides services and products to meet clients specific needs. This ranges from purchasing specialist products to de-risk internal research to long term contract research chemistry services to smaller ad-hoc assignments.
In addition to standard chemistry services, Apex decided to invest in its high-potency facilities several years ago. It is now reaping the rewards via a growing, high-value pipeline of customers in this niche area, which helps set the Company apart from its peers.
The Company recently announced significant company growth with a 53% increase in top-line performance. The last 12 months also saw the business increase its international customer base, with 25% of customers during the year being from the US.
Apex puts its growth down to its burgeoning reputation, bolstered by significant repeat business and recommendations from existing customers to potential new ones.
Acceleris and Apex
Acceleris and Apex have had a close partnership since the incorporation of the business. Acceleris has advised on multiple funding rounds for the business while acting as a board observer and company secretary and providing outsourced accountancy services in Apex's early years. This has ensured that the Company has practised good governance throughout its growth. We have been very impressed with how the management team has navigated the growing pains of consistent revenue growth, securing leading clients on long-term repeat projects.
"Apex's sustained growth over recent years is due to the hard work of our expanding team and how they communicate and deliver for our customers. Our expansion is set to continue as we bring in new customers and chemists, predominantly in the areas of pre-clinical drug discovery. Acceleris has been a key partner for us since our early stages – their pragmatic and creative approach to financing our business, alongside their support and attention at a strategic level, have been key for our continued growth. The future looks very exciting for Apex." - Stuart Brown
"It has been a delight working with Apex Molecular since their early stages – the young management team have delivered consistent growth, and the experienced board of directors has ensured we have maintained sound governance from the start. Apex provide a quality service in a growing sector, and we look forward to witnessing further growth for the business to provide strong returns to Shareholders" - Simon Thorn