The European B2B pharmaceutical marketplace closed a venture seed round led by Practica Capital. Iron Wolf Capital, Pandos, and a group of angel investors also participated in the funding round.

Lithuania-based Pipelinepharma is a B2B pharmaceutical marketplace that connects pharmaceutical manufacturers with distributors around the globe. The marketplace has already facilitated pharmaceutical product licensing, supply, acquisition deals of more than €200M in value covering more than 30 markets on 5 continents.

The investment will be realized to attract top talent to the engineering, data science, pharmaceutical sales, and marketing teams, further building upon Pipelinepharma’s mission – to make pharmaceutical products more affordable for every human on the planet.

“We are certain that future pharmaceutical B2B partnerships deals will take place online. The disruption of traditional dealmaking due to the pandemic only accelerated the shift to digital channels. Our database of vetted pharmaceutical products and qualified manufacturers accelerates product discovery, streamlines negotiations, and significantly reduces business development costs”,- noted co-founder and CEO of Pipelinepharma Mindaugas Zagorskis.

Pipelinepharma features one the largest databases of qualified finished dosage formulation products, with more than 60 000 pharmaceuticals from 1 300 qualified manufacturers – a list that is rapidly expanding every day. Each product features rich up-to-date data, including country of origin, dossier type, GMP approvals, and many more, which significantly reduce product discovery and dossier auditing time.

Deals on the platform are supervised by Pipelinepharma business development executives, who help to maximise transaction success.

“Our business associates have a direct working relationship with manufacturers featured on the platform, perform buyer qualification and assist in finding the best buyer and seller match up until the signature of 1-page-term-sheet and agreement”, – added Mindaugas Zagorskis.

In the words of Mindaugas Zagorskis, Pipelinepharma reduces the time-to-term sheet to 30 days – a process which in traditional pharmaceutical dealmaking took months or even years to complete.

The seed round was led by Practica Capital, who were also the initial investors in the Pipelinepharma platform.

“The digital transformation of pharmaceutical commerce was long overdue. We regard this as one of the fastest-growing areas in the digital healthcare landscape with Pipelinepharma well-positioned to lead in this field”, – noted Mr. Tomas Andriuškevičius, Partner at Practica Capital. 

Iron Wolf Capital invested €450 000 in this round. In the words of Mr. Žygimantas Susnys, a partner at Iron Wolf Capital, PipelinePharma has already made significant inroads in shifting pharmaceutical B2B dealmaking online.

“Pipelinepharma is introducing innovation into the €300B generic pharmaceutical market which still relies on supply contracts primarily sourced through offline events, trade fairs or pharmaceuticals brokers. With its marketplace, Pipelinepharma introduces business development simplicity into one of the key areas of global trade”, – added Žygimantas Susnys.

About Pipelinepharma

Pipelinepharma is a B2B pharmaceutical marketplace that connects pharmaceutical manufacturers with distributors around the globe. For platform sellers – pharmaceutical manufacturers, it helps to find qualified buyers, sign new licensing and supply agreements and launch new markets. For buyers – pharmaceutical companies, distributors, pharmacy chains, it helps faster to build a portfolio pipeline directly connecting them with qualified manufacturers.

About Practica Capital 

Founded in 2011, Practica Capital is a dedicated Baltic VC focusing on investments in the Baltics (Lithuania, Latvia, Estonia) and Baltic-origin ventures in Europe. The company invests in seed, late seed, and Series A ventures backing great teams behind the tech-driven businesses from the region and partnering with them as company builders. Practica Capital manages three venture capital funds with a total size of more than €50M. Of which the latest Practica Venture Capital II Fund was established under the framework of the financial instrument Development Fund I managed by Invega and financed from the European Regional Development Fund (ERDF). To date, Practica Capital has made more than 60 investments, including the most prominent Lithuanian start-up ecosystem companies such as TransferGo, Trafi, CGtrader, NanoAvionics, Ziticity, Interactio, PVcase and others.

About Iron Wolf Capital

Iron Wolf is a leading early-stage VC fund backing teams that build disruptive technologies and pursue ambitious global growth strategies. With more than 15 investments in the last 24 months, it is amongst the most active investors in the Baltics and beyond.  Its focus sectors are Artificial Intelligence, IoT, SaaS, Deeptech, Fintech, and Marketplaces.  Iron Wolf manages EUR 21 million VC fund that was established under the framework of the financial instrument Venture Capital Fund II managed by Invega and financed from the European Regional Development Fund (ERDF).