Melbourne life sciences biz in strategic review; hires Rothschild

afr.com:

Biotech deals which fetch 20-times sale multiples give Street Talk the tingles: here’s a new name to watch.

IonOpticks has appointed Rothschild & Co as financial advisor. Erin Jonasson

Rothschild & Co has been appointed to run a strategic review of Melbourne life sciences business IonOpticks as it seeks a partner to turbocharge its growth. The company manufactures chromatography products – a laboratory technique for separating the components – for disease researchers globally.

Sources said IonOpticks, founded by five individuals in 2018, has seen strong growth since hanging up its shingle, exposed to the proteomics research market which is expanding at around 20 per cent annually. It delivered healthy profit margins and revenue of around $8 million in financial year 2023, the sources said.

At sale, similar businesses have attracted valuations of 20 times or more revenue, putting a potential price for IonOpticks at around $160 million-plus. It is understood a full sale is not on the cards for the company, which was profitable from year one and is seeking to maintain its independence. Still, a strategic review typically leads to a change of control, or a significant new shareholder, and no doubt the founders will consider all options.

The review comes amid a wave of local biotech deals, both private and public. Late last month, The Carlyle Group and its life-sciences arm Abingworth went all in on ASX-listed biotech Opthea’s $80 million capital raise, doubling down on their investment in a bid to get the company’s lead therapeutic candidate OPT-302 to market.

Tenmile Ventures, Andrew Forrest’s health technology investment vehicle, is continuing its search for the next big thing in the sector, taking another bet on