A Swiss technology company that specialises in smart containers for the sustainable transportation of pharmaceutical products, has just received significant investment from the United Arab Emirates (UAE), in a strategic round to increase growth in the Middle East and Far East regions.

SkyCell, which was founded in 2012, has secured $34.8 million (CHF 32 million) in Series C funding, in a combination of equity and debt financing led by Abu Dhabi’s DisruptAD, and the Dubai-headquartered SHUAA Capital.

Investment also came from “China-based and Zurich-based family offices with strategically important networks”, while follow-on funding was contributed by existing investor, Mobiliar, the company confirmed in a statement.

“Over the past 18 months, the COVID-19 pandemic has put unprecedented pressure on the global pharmaceutical supply chain and pharma companies to secure non-COVID supply lines and protect their temperature-sensitive and high-value cargo,” said SkyCell co-founder and CEO, Richard Ettl. “SkyCell’s goal for this round of financing was to diversify its investor base and gain further access to the Middle and Far East regions, to extend our reach, and support the growth of our client network. We are delighted to have found fantastic long-term partners in both regions.”

THE LARGER CONTEXT

SkyCell designs and manufactures smart containers that “allow pharmaceutical companies to predict, reduce, and control the risks associated with transporting temperature-sensitive drugs.” The hybrid containers are powered by a pool of “nearly one billion data points” on factors that include airports, carriers, handlers, outside temperatures, locations, and transit times.

“SkyCell’s combination of hardware and software innovation delivers an independently-audited market-leading failure rate of less than 0.1% – versus an accepted industry standard between 4 and 12% – while reducing CO2 emissions by almost half,” the company said.

WHY IT MATTERS

DisruptAD, which is the venture capital arm of the Abu Dhabi-based sovereign wealth fund ADQ, will reportedly provide SkyCell with “unparalleled” access to its local and international portfolio, says Ettl.

ADQ did not respond to MobiHealthNews’ requests for comment by publication time.

Continued Ettl: “With two-thirds of the world’s human footprint – including much of the developing global South – within a four-hour flight time, Abu Dhabi is of strategic significance for the global pharma supply chain and for us.

“Additionally, SHUAA Capital, the UAE-based asset management and investment banking firm, and a China-based family office with strategically important ties to the logistics industry, will further bolster our client acquisition campaigns.”

He added: “The funding will enable us to grow our sales teams and convert our growing pipeline of global pharmaceutical and biotech clients. Additionally, we will be able to further improve the experience we offer our clients, further differentiate our hardware and SaaS offerings based on their needs and become their distribution solution of choice for cold chain.

“Finally, this funding allows our business to continue to make strategic investments and drive innovative product developments, to ensure that we can continuously offer our clients the world’s most advanced hardware fleet, software solutions, and worldwide operations and support.”

Over the past year, SkyCell introduced a new type of container that allows “deep-frozen” transmission of pharmaceuticals by maintaining an internal temperature of -80°C; crucial for COVID-19 vaccines, such as those by BioNTech-Pfizer, for example.

The company currently has partnership agreements with carriers, including Qatar Airway Cargo, Saudia Cargo, KLM Airfrance Martinair Cargo, Korean Air, and Virgin Atlantic.

ON THE RECORD

“At SHUAA, we invest in pioneering and innovative companies, especially in vital sectors that have a significant impact on society, and that at the same time generate meaningful returns for our shareholders,” said Jassim Alseddiqi, Group CEO at SHUAA Capital. “SkyCell is one such business, using technology to transform the pharmaceutical supply chain, and we are excited about its growth potential in the coming years, given the importance of its role in designing and manufacturing advanced and safe drug containers.”