Kansas Venture Capital buys clinical research group

SHAWNEE, Kansas – Kansas Venture Capital Inc. has purchased for an undisclosed sum a clinical research organization that was once a division of AAIPharma.

The acquired company, to be called KCAS LLC, was founded 30 years ago by two professors from the University of Missouri-Kansas City, and helps pharmaceutical firms test and evaluate new drug candidates. KCAS had most recently been owned by North Carolina-based ZeeCRO Inc., which changed its name from AAIPharma earlier this year.

The acquisition marks Kansas Venture Capital’s first foray into life sciences, the Kansas City Business Journal reported. KCAS posted revenue around $8 million last year, but Kansas Venture Capital “would be disappointed” if the company’s sales fail to hit $25 million in five years, the Business Journal reported.

KCAS focuses on small-molecule drug testing but hopes to expand into newer large-molecule drugs. It also wants to move into testing finished products and materials, KCAS President Dari Dadgar told the Business Journal.