PPD has wrapped up the spin-off X-Chem to its private equity owners, the Wilmington company says.
The X-Chem deal was behind the “X-Co Holdings LP” mystery that unfolded after an SEC filing this week.
“PPD has completed the spin-off of X-Chem, a leader in DNA-encoded library technology, to the shareholders of PPD’s parent company, forming an independent, privately owned biotech company,” PPD spokesperson Ned Glascock told WRAL TechWire Friday morning.
“PPD initially invested in X-Chem in 2010 before acquiring the company in 2014.”
Financial terms were not disclosed.
Glascock later referred WTW to X-Chem for further information.
Caryle Group and Hellman & Friedman own PPD. There have been rumors that PPD is for sale.
The “X” comes in here:
X-Rx was created by PPD and X-Checm in 2012 “to advance certain X-Chem internal programs in the areas of oncology, autoimmunity, inflammation and fibrosis, with the most advanced program expected to enter the clinic in 2016,” X-Chem said.
The spin-off took place on Jan. 6.
X-Chem is based in Waltham, Mass.
“X-Chem has emerged as the leader in DNA-encoded Library technology. Our goal as an independent biotechnology company is to continue to evolve our platform and work closely with our partners to fully integrate our capabilities as a central drug discovery paradigm,” said Richard Wagner, the founder and CEO of X-Chem, in the announcement. “Further, we will continue to seek new opportunities in emerging biological systems to co-invest our efforts to discover novel, first-in-class therapeutics.”
The company pointed out that “PPD management provided strategic and financial guidance to help X-Chem advance the commercialization of its unique small molecule discovery platform and build out its biotechnology business model for future growth. Based on the new strategic direction for X-Chem, the companies decided to spin out X-Chem to further pursue its biotech focus and partnering strategies to create maximal value for its shareholders.”
As WTW reported earlier, X-Co has raised $71 million in equity.
Judd Hartman, who filed the Form D for “X-Co Holdings,” is general counsel for PPD.
Three other names on the filing are linked to Caryle Group and Hellman & Friedman.
Research by a source notes that the three are “onPPD’s board and are investors/employed by PPD’s owners: Carlyle Group LP and Hellman & Friedman LLC.”
They are:
- Joe Bress – VP at The Carlyle Group
- Ram M. Jagannath – Principal at The Carlyle Group
- Stephen Ensley – Director at Hellman & Friedman
