Elysian Capital and Clydesdale Bank back pharma ‘specials’ business

Vertical Pharma Resources Limited, trading as Integrated Pharmaceutical Services (IPS), one of the UK’s leading suppliers of bespoke medicines, has received substantial financial investment from Elysian Capital and Clydesdale Bank.

The transaction of undisclosed value allows for the exit of two of the original four founders of the business and provides funds for expansion. Clydesdale Bank is providing a multi-million pound funding package through its Corporate & Structured Finance team alongside funds from Elysian and reinvestment by the management team.

IPS, based in West Molesey, Surrey, supplies pharmacies with medicines based on standard drug compounds but adapted to meet the needs of individual patients. IPS supplies direct to pharmacies, mainly within London and the South East and has seen steady increases in sales over the past few years and is set to achieve a record level in 2010.

IPS was established in 2001. The investment will provide an exit for two of the four founders and allow them to pursue their other business interests.

Ashok Patel, the current managing director, and Girish Patel, the procurement director, will take the company forward, with support from the recently appointed chairman Dr Chai Patel, who founded and sold the Priory Group alongside Elysian founder Ken Terry.

Edward Brett, director with Elysian Capital, commented: ”Elysian are delighted to have the opportunity to back Ashok and Girish to take IPS forward. They have built a high quality business with strong entrepreneurial roots and we very much look forward to working closely with them to help IPS continue to flourish.”

The Clydesdale Bank team was led by Robin Womersley, director with Corporate & Structured Finance, who said: “IPS has established a loyal customer base on the back of its highly efficient manufacturing operation and strong track record for reliability. This deal will enable a continued solid foundation for the future and ensure the continued expansion of the business.”

The ongoing relationship management for Vertical Pharma Resources will be managed by Corporate & Structured Finance in the south.