Healthcare Specialist SHS Capital, together with its Partners, invests further capital in Develco to meet exceptional market demand

• SHS, its limited partners and other shareholders are investing ~ €10 million in Develco Pharma to meet exceptional market demand and take the company to the next level by expanding manufacturing capacities and investing into new product developments and technologies
• Headquartered in the DACH region, Develco is a leading developer and manufacturer of innovative modified release drug formulations in pain management and other therapeutic areas
• After having invested in 2020, SHS Capital is thrilled to continue backing Develco on its impressive growth journey, driven by an order book that has far exceeded last year’s revenue

Tuebingen / 07.10.2024

SHS Capital is pleased to announce a significant investment alongside its limited partners in one of its portfolio companies, Develco. SHS Capital has been a committed investor since 2020 and is pleased to have offered its LPs the opportunity to co-invest in Develco. Develco is a specialty pharma company focused on the development and manufacturing of innovative modified release drug formulations. Its core competence lies in using advanced technologies such as multi-unit pellet and matrix systems.

Following SHS's investment, the strategic focus has been on supporting the founder-led management team by complementing it with experienced external leaders. Backed by SHS, the company successfully installed a highly qualified first and second level management and strengthened the board with leading industry experts. Since 2020, Develco has expanded its product portfolio by launching new drugs and registering existing products in additional countries.

In recent years, demand for Develco's products and production capacities has increased significantly, resulting in a remarkable order book that exceeds 12 months' worth of revenue and has led to double-digit growth rates. To match the rising demand and accelerate its growth trajectory, Develco has focused on expanding its production capacities and boosting operational efficiency.

After establishing a strong foundation for scaling the business, SHS Capital, in collaboration with the board and management, have decided to fuel the company with ~€10 million to capitalize on the company’s current momentum and unlock future opportunities. SHS is delighted to have had the opportunity to invite its LPs to this investment.

"Develco has demonstrated excellence in a highly specialized industry, and with this additional capital, we are confident we can elevate Develco to new heights and further accelerate its growth trajectory. In addition, we are pleased that we have been able to offer our LPs the opportunity to co-invest with us, as we are committed to always providing quality investment opportunities to our LP base," said Manfred Ulmer-Weber, Managing Partner at SHS and board member of Develco.

"We are excited about our continued partnership with SHS. We welcome the new investment to help us scale our operations, increase the investments in our product development, and further expand our technological capabilities. This will allow us to meet the growing market demand and remain at the forefront of our field," emphasized Dr Martin Renner, CEO of Develco.

About SHS Capital

SHS Capital is a private equity provider founded in 1993 that invests in healthcare companies in Europe. The focus of the investments is on expansion financing, shareholder changes and succession situations. "Building European Healthcare Champions" is the investment philosophy according to which SHS finances and develops portfolio companies. The Tübingen-based investor takes both minority and majority stakes. The national and international investors in SHS funds include pension funds, funds of funds, foundations, family offices, strategic investors, entrepreneurs and the SHS management team. The equity or equity-like investment of the AIF is up to € 40 million. Volumes in excess of this can be realised with a network of co-investors. In its investment decisions, SHS attaches great importance to the consideration of ESG aspects and has therefore committed itself to the guidelines of the UN PRI. SHS is currently investing from its sixth fund, which was launched in 2022 and has a volume of ca. € 270 million.

More information at: http://www.shs-capital.eu

PR contact:
Sarah Stelzer
SHS Gesellschaft für Beteiligungsmanagement mbH
Bismarckstrasse 12
72072 Tuebingen
sas@shs-capital.eu