Investing in a Shared Vision
Meeting the Challenges of Medical Products Operators
Excellere’s interest in the sector is motivated by the firm’s significant healthcare investment experience and its thesis behind the critical role Medical Products will play in the future of the healthcare ecosystem, including: (i) a continued focus on precision and personalized medicine – creating demand for new technologies that enhance diagnoses while lowering overall cost of care, (ii) a shift outside of traditional care settings (such as in-home and telemedicine) – driving demand for remote and tech-enabled solutions, (iii) increasing incidences of complex, [chronic] diseases and disorders – leading to demand for products that enhance therapy quality and utilization, and (iv) growing global healthcare expenditures due to an aging population, technological advancements and regulatory complexities.
Investment Criteria
- Minimum EBITDA of $7 million for platform acquisition
- Historical revenue growth and stable margin profile, reflecting a strong value proposition
- Established market reputation and attractive growth avenues
- Culture of innovation, design, and engineering expertise
- Differentiated products and services
- History of retaining customers
- Diverse products, customers and end-markets
Areas of Interest
Investment Focus
Achieving industry leadership does not always mean building the largest company, but it does mean building a company that is valued by its customers and admired by its competitors. We believe those traits can’t simply be purchased, which is why they must be inherent in every company we partner with. Excellere is actively seeking medical products investments across diagnostics, medical technology, and pharmacy supply chains where we have previous direct experience and domain expertise or have completed extensive industry research and developed a strategic vision for growth.
Medical Products Targeted Segments
Diagnostics & Research Tools
- Consumable lab supplies
- In-Vitro diagnostics
- Microbiome research tools
- Analytical & sample prep
- Bioinformatics
- Bioprocessing (tools, reagent and media suppliers, and assoicated services)
Medical Products & Outsourced Services
- Medical consumables, single-use products
- Medical devices and DME
- Contract design, engineering, and manufacturing services (CMO)
- Highly engineered or precision components/assemblies
- Associated services (regulatory, packaging, sterilization, maintenance)
Pharmacy
- Infusion
- Drug delivery
- Packaging,testing, inspection
- Pharmaceutical manufacturing and distribution
Sub-Sector Spotlight
Medical Products & Outsourced Services
The Medical Product Manufacturing and Outsourcing industry plays a crucial role in the production and distribution of medical devices, pharmaceuticals, and other healthcare related products through ensured product access, reliability, quality, packaging, and/or distribution. Many medical product manufacturers choose to outsource certain aspects of design, engineering, and/or manufacturing to access specialized capabilities and economies of scale to and focus on core competencies, like research and development.
The increasing propensity to outsource pre- and post-production processes coupled with the high switching costs of these services and products once they continues to drive outsized growth of contract manufacturing relative to OEMs. Particularly for providers with clear and focused strategies, targeted markets, differentiated engineering and manufacturing capabilities, and high quality programs and service.
Segments of Interest
Medical Products
- Medical consumables or single-use products
- Medical devices and DME
- Highly engineered or precision components/assemblies
Outsourced Services
- Contract design, engineering, and manufacturing services
- Associated services (regulatory, packaging, sterilization, maintenance)
- Value added distribution
Sub-Sector Spotlight
Pharmacy
The Pharmacy space is critical in producing, distributing, and ensuring the safety of medications and therapies that improve the health of and well-being of people worldwide. Given the mission critical nature of the pharmacy industry, companies must be able to ensure product reliability and quality, and employ creative problem solving to meet market demands and remedy pain points in the value chain. Market opportunities are created by the various key processes involved in the pharmaceutical value chain: formulation, production, quality control, packaging, and distribution, and patient intake and revenue cycle. This multi-faceted space is expected to sustain growth as incidences of chronic disease rise, advanced therapies expand, and aging populations and their associated healthcare expenditures continue to grow.
Segments of Interest
- Infusion
- Drug Delivery
- Pharmaceutical manufacturing and distribution
- Packaging
- Pharmacy workflow and compliance
Sub-Sector Spotlight
Diagnostics & Research Tools
Diagnostics & research tool companies are essential for accurate disease diagnosis, therapy development and effective delivery, and patient monitoring. They enable healthcare professionals and drug developers to analyze samples, study biological processes, and identify potential therapeutic targets. The market is characterized by innovation as both established players and emerging companies utilize proprietary technologies and scientific discovery to enable their customers to more effectively diagnose and streamline research and manufacturing processes.
The diagnostics and research tool industry is expected to continue to play an increasing role in advancing healthcare and research due to the rising demand for personalized medicine, adoption of single use technology, and increasing healthcare expenditures.
Segments of Interest
Diagnostics
- In-vitro diagnostics
- Laboratory Information Systems (LIS)
- Bioinformatics
- Genomic technologies
Outsourced Services
- Microbiome research tools
- Clinical decision support tools
- Biomarker discovery and antibody development
- Bioprocessing (life science tools, reagent and media suppliers)
Consumables
- Consumable lab supplies
- Analytical and sample prep
- Reagents & kits
- Sterile syringes / bags
- Disposable electrodes & medical kits
- Vial adapters
