Published: Jul 15, 2014
Focus:
Growth Capital
The Scottish Loan Fund has committed £0.75 million of funding to BioFilm Holdings Limited (BioFilm), a leader in the development and manufacture of Thin Dissolving Films (TDFs), for use in over-the-counter (OTC) nutritional, pharmaceutical, and cosmetic products.
Since 2011 the SLF has been supporting SMEs from across Scotland to unlock their growth potential, by providing a range of flexible funding packages of up to £5 million. The Fund, which was set up by the Scottish Investment Bank, the investment arm of Scottish Enterprise, and is managed by Maven Capital Partners (Maven), has now committed over £40 million in support of ambitious businesses. BioFilm is the 18th transaction of the fund.
Blantyre based BioFilm was previously part of Devro plc developing edible thin films for the meat industry, before the management team led a buy-out of the business in 2007. In the years following the MBO BioFilm has shifted its focus and now principally operates within the consumer healthcare market.
BioFilm manufactures TDFs from low molecular polymers which dissolve when in contact with moisture, and have been specifically formulated to carry a range of active ingredients. BioFilm is a fully integrated producer of TDFs and has the capacity to take innovative concepts from initial R&D, through manufacture, and packaging, to final delivery to the end consumer. The company has successfully developed a number of new products and technologies and has a strong pipeline of opportunities.
The funding provided by the SLF will strengthen BioFilm’s sales function particularly in the US. The business already sells to a global client base, with customers in countries including the UK, US, Mexico, Poland and Australia, but with retail sales of $33 billion in 2013 the US OTC market provides considerable scope for future growth.
David Milroy, Investment Director at Maven, commented: “We are pleased to support BioFilm with additional funding to help them capitalise on their growing list of partnerships. The current rate of new product launches demonstrates the team’s ability to successfully develop a range of over-the-counter (OTC) medicines. With relatively short times to market and growth in sales outstripping that of prescription drugs, the OTC market represents a potentially lucrative market for businesses able to offer a consumer-friendly alternative to existing formulations. BioFilm is an innovative and ambitious company and we believe they will benefit from the flexible and long term funding solution we are able to provide via the Scottish Loan Fund.”
Trevor Morgan, CEO at BioFilm, added: “The funding from the Scottish Loan Fund will enable us to invest in the future of the business and build upon the strong foundations and pipeline of opportunities that are in place. Having previously met the SLF team they have worked hard to understand our business and that has enabled them to commit to our future plans and ensure we have the capital and commercial support to succeed.”
Kerry Sharp, Head of the Scottish Investment Bank, said, “BioFilm has been in our portfolio for a number of years and is also account managed by Scottish Enterprise. During this time we have seen it make great strides, breaking into the European market, expanding the work force and upgrading its facilities. It’s good to see the business secure fresh funding to aid its growth strategy in the US, and we are pleased to be able to support them in this via the Scottish Loan Fund.”
