Life sciences technology and product company Immunoprecise has announced that its president Thomas D’Orazio has released a letter to shareholders to reflect on why he has also accepted the role of chief executive officer (CEO) following the completion of a $4.3 million financing of the TSX Venture exchange, which has now begun trading.
The letter said: "The ImmunoPrecise team has achieved a tremendous amount in the short time since I was appointed president and CEO in August 2016 and I think it’s important that I take this opportunity to reflect and explain why I was drawn to accepting the role of CEO of ImmunoPrecise in the first place.
When I was first introduced to ImmunoPrecise I discovered a talented scientific staff in a unique company that prided itself on excellent customer satisfaction, as a premier supplier of custom antibodies to the global research and drug development community. Robert Beecroft, who founded ImmunoPrecise in 1989, had successfully implemented three key innovations that have allowed the company to set itself apart from other antibody companies:
- RapidprimeTM immunization strategy in mice
- Single-step cloning for selection of hybridomas
- Recombinant monoclonal antibody technology (RMAT) for the generation of rabbit monoclonal antibodies (mAbs)
These innovative methodologies, when combined with scientific excellence, experience, and unwavering customer care allowed ImmunoPrecise to build an enviable client list and an admirable reputation in its marketplace. We are known and trusted as a proven problem solver and partner by our clients, as my many recent one-on-one discussions with key client accounts has validated.
However, what became clear to me throughout my due diligence period was the tremendous untapped potential that I believe this company to have.
It is important to note that the antibody sector is very active and growing rapidly. Over 50% of all new drug therapies in development are antibody based. Leading pharmaceutical companies including Bayer AG, Pfizer Inc, Sanofi, F.Hoffman-La Roche, Merck, GlaxoSmithKline, NovartisAG and Abbvie amongst others have developed or are developing antibody based drug therapies including several of the top selling drugs in history.
Research and development will focus on cancer, autoimmune diseases, infection, ophthalmological diseases and hematological diseases among others. Transparency Market Research recently released a market study reporting that the monoclonal antibody therapeutic market will be worth $245 billion by 2024 up from $86.7 billion in 2015 a CAGR of 13.5%. This growth will significantly increase demand for all products and services from companies such as ImmunoPrecise who serve this industry. ImmunoPrecise is ideally situated to benefit from these tailwinds.
We have spent the last number of months developing a strategic and tactical plan to implement aggressive new business development initiatives that are already helping our core business of contract manufacturing antibodies and cryo-storage to grow rapidly with improving margins, which provides a very stable base to our business. While actively pursuing new client relationships, we are also working closely with our existing clients to become a more integral component of their research & development programs, and provide additional much-needed services that have always been within our technical capabilities but have never been fully exploited, thus increasing our wallet share of our client’s total development spend.
We have a world-class team with a culture of scientific excellence, and this team is now pursuing new opportunities that will fully deploy our technical abilities.
The road from basic research to creating a drug like the monoclonal antibody Humira (world’s top selling pharmaceutical product used for pain relief, $13 billion in 2014 global sales) or Avastin (an antibody based cancer drug that sold over $7.3 Billion in 2015) is long, and right now ImmunoPrecise services a small section of that road. We are working to change that through partnerships and strategic acquisitions, which will allow us to claim a broader scope of work within our core competencies and provide new processes and innovations to our clients.
One area of particular interest to the company is in humanizing antibodies, which is a key step and one of the fastest growing areas in the multi-billion dollar development of successful therapies. We are also increasing our focus on new product development, and process refinement, which will allow us to unleash the capacity of our team to further commercialize our innovations.
Increasing production capacity
We have commenced design and construction of a new laboratory at the Vancouver Island Technology Park which will allow us to meet the growing demand for our products and services. We expect this state-of-the-art laboratory to come on-line in the next 90 days, and combined with newly implemented Lean Manufacturing Principles will help to meet increased customer demand.
I believe the ImmunoPrecise team has the expertise, the technical resources, the drive and commitment to succeed, and now with a solid financial base, the necessary capital resources to deliver greater results to its shareholders and to its customers. The opportunity has never been better for our company.
Thank-you for your support. We look forward to achieving many milestones throughout 2017 and are committed to continuing to generate significant shareholder returns.
Thomas D’Orazio, President, CEO and Director"