SHL, after bagging long-term contracts, lands financial support for drug delivery growth strategy

SHL Medical has secured financial support for the next phase of its drug delivery growth plan, bringing on board a consortium of investors that will enable it to add production capacity in the U.S. and Europe.

Switzerland-based SHL provides drug delivery devices such as autoinjectors, pen injectors and inhalation systems. In 2020, EQT, a Stockholm-based global investment organization, partnered with the company through its EQT VIII fund. Since then, SHL has “significantly outperformed its business plan,” according to EQT, leading to the creation of a growth strategy that stretches out to 2030. 

EQT wants to help SHL execute the strategy. Having initially backed SHL through its 10.9 billion euro ($11.5 billion) EQT VIII fund, the investment group has now sold that minority stake to a consortium featuring its own impact-driven longer-hold investment vehicle EQT Future.

The consortium brings together EQT Future, ATHOS and other co-investors to support SHL as it works to increase its manufacturing footprint. SHL CEO Ulrich Faessler outlined his thoughts on the investment. 

“We have a great partnership with EQT and are excited to work closely with EQT Future, ATHOS and the other co-investors to accelerate our global expansion and to develop new drug delivery solution offerings. Together, we will continue to build and grow the company to provide the best possible service to our customers and for patients around the globe,” Faessler said in a statement.

The transaction follows in the wake of several long-term contracts between SHL and partners that form the bedrock of its 2030 growth strategy plus certain upgrades to manufacturing and commercialization capabilities and digitalization of its activities. Earlier this year, SHL outlined plans to invest $90 million in a new manufacturing plant in South Carolina. The site is due to start operations in 2024.