BioPore, Inc. Receives Strategic Business Services from IMC and Implements Acquisition
Company Name: BioPore, Inc.
City, State: State College, PA
Industry: SIC 28 - Chemicals and Allied Products
Type of Assistance: Technical Assistance
Year of Study: 2000
Company Profile: BioPore, Inc. is a small biotechnology company located in State College employing nine people. The company has focused on the development of new techniques and products to store sperm (human and animal reproduction) and to store blood cell tissue from animals and humans. The initial focus for the applications of these new techniques has been the agricultural industries.
Situation: The founders of BioPore have been working for over ten years to develop and implement the new technology in the agriculture industries (turkey, swine, cattle, etc.), but acceptance has been very slow. The Chairman of the Board decided to take advantage of the new Strategic Management Services offered by the IMC to strengthen BioPore's business.
Solution: IMC staff reviewed the current business plan and determined that cash flow was very tight and highly dependent on grants and new investments while the commercialization was very slow. BioPore also lacked any significant experience in manufacturing. To help correct this situation, IMC staff recommended that BioPore consider the acquisition of a small company. The goals of the acquisition were to provide new sales, a significant customer base and reasonable manufacturing facilities.
After the BioPore Board of Directors agreed to the proposal, IMC identified and evaluated several companies and recommended Matreya, Inc. as a likely candidate. Matreya is a small, local developer and manufacturer of specialty lipids and bio-chemicals in need of an infusion of new technology. With BioPore's approval, IMC successfully led the acquisition effort, including the preparation of a formal proposal and Letter of Intent, performance of the Due Diligence, etc. The IMC also led the crucial final negotiations of the selected company.
Results: BioPore immediately increased employment by 67% (10 people), sales by nine fold ($900,000), access to a new global biochemical industry segment and significantly reduced the grant and investment requirements. In addition, the growth potential for the combined companies has been greatly improved, enabling BioPore to revise its schedules, strengthen its management team and improve its facilities early. The combined strengths of both companies far exceed the individual company strengths with BioPore bringing its visionary and research capabilities and the biochemical company its established cash flow, global customer base and manufacturing processes. It has created a benefit to both Pennsylvania and the global economies.