Evonik Acquires German Biotech JeNaCell
For an undisclosed sum, Germany’s Evonik has acquired German industrial biotech JeNaCell, thereby expanding its biomaterials portfolio to biotechnologically derived cellulose. The Essen-based group said the acquisition confirms its venture capital arm’s strategy of investing early in start-ups with visionary technology relevant to its own innovation growth fields.
Recognizing JeNaCell’s potential in 2015 as a developer of nature-identical material used in medical technology and dermatology for treatment of wounds and burns as well as in hydroactive skin care, Evonik Venture Capital (EVC) invested in the fledgling company when it was still a start-up.
Following the takeover, JeNaCell's portfolio is planned to be integrated into the chemical producer’s health care business, though the company itself will continue working from its development and production site in Jena in eastern Germany.
Evonik said the buy accelerates the portfolio shift of its Nutrition & Care division toward system solutions and expands the division-wide technology platform of natural materials for medical technology. From 20% currently, the share of system solutions in Nutrition & Care is now expected to rise to more than 50% by 2030.
The biotech’s product developments are said to complement the portfolio of Evonik's Health Care business line, which with lead product Resomer offers a portfolio of standard, custom and specialized bioresorbable polymers for use with implantable medical devices and pharmaceutical drug products.
“JeNaCell has developed one of the most innovative biomaterials for medical device technologies. With the help of the creativity and expertise of the biotech’s specialists, we will ensure that even more patients benefit from these products in the future,” said Thomas Riermeier, head of the healthcare line. “The acquisition will help us to further strengthen our position as an innovation hub for the world’s leading medical technology companies.”
Being acquired by Evonik is a “quantum leap for JeNaCell to realize the full potential of our innovative technology,” Dana Kralisch, the company’s CEO and co-founder, commented.
For EVC head Bernhard Mohr, “JeNaCell is a great example for the innovation strength and the value that start-ups can bring to corporations.” The innovative company began as a spinoff of Friedrich-Schiller-University of Jena in Germany. In 2017, under the name epicite, it launched its first product, a wound dressing that provides a healing-promoting microclimate. Other developments include soft tissue implants, transdermal delivery systems and dermatological applications.
With a fund volume of €250 million, Evonik Venture Capital has made more than 30 investments since 2012, both direct and fund investments. With offices in Germany, the US and China, the vehicle invests in innovative technologies and disruptive business models in the fields of Nutrition & Care, Specialty Additives and Smart Materials, as well as enabling digital technologies. Its investment scope ranges from early stage to growth stage with investment volume per portfolio company of up to €15 million.
Author: Dede Williams, Freelance Journalist
