Sale of Gentronix to Danish group provides an exit for investor Mercia Ventures

Gentronix – the UK-based contract research organisation (CRO) that is a world leader in genetic toxicology – has been acquired by Scantox Group of Denmark for an undisclosed sum.

The deal provides an exit for Mercia Ventures’ Northern Venture Capital Trusts (VCTs), which have sold their stake in the business for £14.8m, representing a 4.5x return on investment.

Gentronix, which is based in Alderley Park in Cheshire, provides predictive toxicology services to the global pharma and chemical industry, enabling clients developing new drugs or products to identify genotoxic compounds at an early stage. The company also has expertise in ocular and skin sensitisation assays.

Founded in 1999 by Professor Richard Walmsley, Gentronix now employs almost 70 employees, having doubled its workforce since 2021.  The company received the King’s Award for Enterprise in May this year after increasing its overseas earnings by 239% over three years, driving annual revenue to over £10m, with export sales accounting for 81% of that.

Following the acquisition, Gentronix will continue to operate under its current name and from its existing premises. The deal will give it access to new global opportunities while enabling Scantox to expand its services in response to client demands and provide a one-stop shop to support drug development in the lead up to human trials.

Matt Tate, CEO of Gentronix, said: “Becoming a part of Scantox Group is a fantastic next step for Gentronix, opening up unique possibilities for us to offer an even greater service portfolio to our clients.  The scale-up journey at Gentronix has been strongly supported by Mercia and the Northen VCTs. Alex Gwyther and the team have been fantastic investment partners, working with us to develop a successful CRO that now has the opportunity to continue its growth within the Scantox group.”

Mercia’s Northern VCTs first invested in Gentronix in 2007 and provided further funding over the years to support its ongoing growth.

Alex Gwyther of Mercia Ventures said: “This deal demonstrates the benefit of patient capital in building a world-class life sciences business. It has been rewarding to see Gentronix evolve and in recent years it has gained real momentum under the leadership of Matt and his team. The time is right for Gentronix to enter the next phase of its growth story and Scantox is an ideal partner. Bringing together these two businesses will create a leading global force in toxicology and pharmaceutical development.”

Following the acquisition, the Scantox Group will employ nearly 400 people across seven European sites offering lead optimisation, regulatory toxicology, CMC (chemistry, manufacturing and controls), formulation and analytical services. Scantox is owned by Impilo, the leading Nordic healthcare investment company.  

Jeanet Løgsted, CEO of Scantox Group, adds: “I am thrilled that Scantox Group has been able to partner up with Gentronix. Genetic toxicology is a missing link in our portfolio and frequently requested by our clients to become a one-stop-shop premier CRO partner. Gentronix´s service line, client base, high quality standards and not least people culture fits perfectly with our DNA. Our business plan is to continuously expand our service portfolio across all sites and add scientific excellence to the Group.”