Mubadala Investment Company, Abu Dhabi’s sovereign investment fund, is investing $250 million in US biosimulation software company Certara as part of its strategy to expand its healthcare and life sciences investment portfolio.
The investment is in line with Mubadala’s strategy of enabling innovation to address “unmet clinical needs and drive cost efficiencies”, the company said on Wednesday.
Mubadala and existing institutional shareholders of Certara – including a stakeholder affiliated with alternative investment company EQT – have signed an agreement through which a Mubadala affiliate will buy more than 9.61 million shares in Certara.
The private deal, at $26 a share, is expected to be completed on August 2 and EQT will remain a significant shareholder in Certara after the transaction, Mubadala said.
“We are pleased to welcome a significant new investment from Mubadala, a sovereign investor with deep expertise in life sciences that is focused on creating lasting value,” said Certara chief executive William Feehery.
“As a newly listed public company, we are excited by Mubadala’s recognition of Certara’s performance and position as a global leader in biosimulation, especially as we execute on our next phase of growth.”
Private equity player EQT is also a joint investor with Mubadala in IVC Evidensia, Europe’s largest veterinary care provider. Mubadala invested £350m ($494.81m) in IVC Evidensia in a push to expand its consumer-focused investment portfolio.
In February this year, EQT said it had invested in the business, alongside Nestle and US private equity firm Silver Lake.
Mubadala, which has an asset base of Dh894 billion ($243.4bn), invests on behalf of the Abu Dhabi government. The sovereign fund is driving the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.
The company’s investment portfolio spans six continents with interests in aerospace, information and communications technology, semiconductors, metals and mining, renewable energy, petrochemicals and oil and gas.
Mubadala’s investment in Certara, whose software helps to hasten the development of new medicines to improve the lives of patients, adds to the company’s growing healthcare and life sciences portfolio at home and abroad. Certara's clients include more than 1,650 global biopharmaceutical companies, academic institutions and regulatory agencies in 61 countries.
“Biosimulation is transforming traditional drug development via computational approaches that save time and cost throughout the entire biopharma R&D process,” said Camilla Languille, head of Life Sciences at Mubadala.
In March, Mubadala agreed to plough £800m into Britain's life sciences industry over the next five years as part of £1bn deal between the UK and the UAE. The UK's Life Sciences Investment Programme that was unveiled last year will contribute £200m to the deal.
In June, Mubadala Health, the healthcare unit of Mubadala, said it was acquiring a majority stake in United Eastern Medical Services to expand its portfolio of healthcare assets beyond the UAE.
Earlier this year, Mubadala changed its organisational structure to focus on four lines of business – UAE investments, disruptive investments, direct investments and real estate and infrastructure.