The funding provides the Glasgow-headquartered pharmaceutical manufacturer and supplier with working capital in support of its plans to grow organically and through acquisitions. The business has also switched its day-to-day banking to Santander UK.

Target Healthcare manufactures and supplies medicines to retail pharmacies, hospital trusts and large pharmacy wholesalers. It stocks thousands of generic medications for retail pharmacies and is also focused on the manufacture and provision of ‘specials’ (unlicensed medicines designed to meet an individual patient’s clinical needs where licensed medicines are not pertinent to their treatment) to hospitals and major wholesalers.

The business is working to grow organically by expanding its client base throughout the UK including Northern Ireland. Most of its sales are in the UK but it also has clients in Europe and the Middle East, and Santander UK is providing it with international expertise to support the growth of its sales overseas.

It is also looking to expand through acquisitions, building on those it made last year of Pern Consumer Products, which produces eczema treatment brand Dermacool, and Quantum Pharmaceutical, which is focused on the manufacture and supply of specials medications and an aseptic service, which provides sterile medicines to the NHS and private hospitals, typically for cancer treatments.

Both Pern Consumer Products and Quantum Pharmaceutical are based in Durham and retain their own company identities. They follow Target Healthcare’s acquisition in 2017 of UK unlicensed medicine manufacturer Temag Pharma, which has been integrated into the wider business.

Target Healthcare was established in 2012 and has grown over the past decade from an initial staff of two to now employing more than 300. The business continues to grow steadily and is targeting an increase in annual turnover of more than 40% this year on the £75m it achieved in 2021.

Lewis Campbell, managing director, Target Healthcare, said: “Target Healthcare Group is delighted to be working with Santander UK. It is refreshing to have a banking partner that understands the needs of the business and is supportive of our ambitious growth plans.”

Jonathan Kelly, relationship director at Santander UK, added: “Santander UK is well equipped to provide specialist support to companies in the pharmaceutical and medical sectors. We’re delighted to support Target Healthcare with this funding package and to use our international expertise to assist its continued growth overseas.”