PPD‘s (NYSE:PPDI) $3.9 billion acquisition by private equity firms The Carlyle Group and Hellman & Friedman is just the latest in a growing string of private equity deals involving clinical research organizations.
Activity in the CRO space is being driven by its growth: the CRO business has grown and is projected to grow even more as pharmaceutical companies outsource more and more of their work in their effort to cut costs. CRO M&A activity is being driven not only by the need to get bigger, but also by the desire to add the capabilities that pharmaceutical companies want. That’s one of the reasons that inVentiv Health, for example, announced last winter it would acquire pharmaceutical consulting firm Campbell Alliance.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
Private equity firms have become a major driver of recent CRO acquisitions. Wilmington, North Carolina-based PPD’s $3.9 billion sale might be the biggest of the recent CRO M&A deals. Here are some of the other major CRO mergers and acquisition in 2010 and 2011. Many of the deals involved private equity firms. In some cases, the CRO acquirers are themselves backed by private equity.
inventiv Health acquired by Thomas H. Lee Partners. The $1.1 billion deal announced in May 2010 takes Burlington, Massachusetts-based inVentiv private. The price represented a more than 52 percent premium over inVentiv’s stock price before the firm disclosed in March it had been approached by investors about a deal.
INC Research acquired by Avista Capital Partners and the Ontario Teachers’ Pension Plan. Avista and Ontario Teachers’ Pension Plan announced the acquisition of Raleigh, North Carolina-based INC Research in August 2010. The sale price was not disclosed but Bloomberg News, citing unnamed sources, reported the figure was $600 million.
i3 and Campbell Alliance acquired by inVentiv Health. With the January 2011 deal to acquire CRO i3 and consultancy Campbell Alliance, inVentiv also announces it will reorganize into three divisions: clinical, commercial and consulting. Financial terms of the acquisitions were not disclosed.
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
Omnicare Clinical Research acquired by Nautic Partners. Providence, Rhode Island-based Nautic Partners, which has more than $2.5 billion of capital under management, announced a deal in April to acquire King of Prussia, Pennsylvannia-based Omnicare for an undisclosed amount. The deal was Nautic’s third healthcare acquisition from its latest fund and its first CRO acquisition.
Kendle acquired by INC Research. In a merger of two mid-sized CROs, INC Research announces in May a deal to acquire publicly-traded Kendle for $232 million. The deal helps build INC’s global scale, which the company expects will make it more competitive against larger CROs such as Quintiles and PPD.
inVentiv Health acquires Pharmanet Development Group. When the May deal was announced, inVentiv said the acquisition would help boost its global presence to nearly 40 countries while adding both early and late-stage clinical development capabilities. Financial terms of inVentiv’s deal to acquire Princeton, New Jersey-based Pharmanet were not disclosed.
INC Research acquires Trident Clinical Research. Shortly after closing the Kendle deal, INC in June announces another acquisition. Australia-based Trident gives INC expertise in earlier stage clinical trials and helps INC build its presence in Australia and Asia. Financial terms were not disclosed.
