Novasep turns the corner

Abstract

When Thermo Fisher Scientific purchased a viral vector business in Belgium earlier this year, all eyes were on the drug services giant as it added a European arm to the US viral vector operation it acquired for $1.7 billion in 2019. But the real action was arguably taking place at the midsize French firm that sold the business for $875 million. That company, Novasep, emerged from the sale with a clean balance sheet after spending nearly a decade working down debt accrued through mergers and acquisitions—a burden that nearly put it out of business. The deal also completed the process of remaking Novasep. It is now a contract development and manufacturing organization (CDMO) emphasizing small-molecule active pharmaceutical ingredient (API) production and tightly focused on customer molecules that are in late-stage clinical trials or on the market. Novasep managers credit that focus with delivering several months of phenomenal sales growth, resulting