Quad-C Management has made an investment in Pharm-Olam International, a clinical research organization (CRO) serving the pharmaceutical, biotechnology and medical device industries.
Pharm-Olam was founded in 1994 by Dr. Zev Munk, a physician, and Eugene Barg, both of whom have over 20 years of experience in the clinical research field. Dr. Munk and Mr. Barg are retaining a significant ownership stake in the company. Pharm-Olam has 27 offices worldwide and has supported clinical trials in over 60 countries. Pharm-Olam is headquartered in Houston with European operations based near London in Ascot, UK (www.pharm-olam.com).
“Pharm-Olam has established a superior track record of growth and execution, which resonated with Quad-C, as this is an industry that we have spent close to a decade investigating,” said Frank Winslow, a Partner at Quad-C. “Given the significant consolidation in the sector, Pharm-Olam is one of the few mid-tier CROs remaining that can offer small- and mid-sized biotech and pharmaceutical firms exceptional service, deep therapeutic expertise and a global presence. We look forward to building on these strengths to accelerate growth, while actively pursuing strategic acquisitions that bring new services and/or geographical capabilities to Pharm-Olam.”
The clinical CRO market has grown substantially
over the past five years
According to Quad-C, the demand for the clinical CRO market has grown substantially over the past five years, driven by increasing costs and time required for pharmaceutical and biotech companies to commercialize new drugs, as well as ongoing globalization trends and the growing complexity of clinical trials. The total CRO outsourced drug development market is approximately $24 billion in size. The segment is expected to grow at a roughly 7% compounded annual growth rate, according to Credit Suisse, which anticipates outsourced penetration will reach 50% of the total drug development market by 2020.
Concurrent with the transaction, David Grange, who has been working with Quad-C for over a year, will be joining the Pharm-Olam board as Vice Chairman. Mr. Grange is a former CEO and long-time board member of PPD (Pharmaceutical Product Development), one of the largest CROs in the world. He is also the former CEO and COO of the McCormick Foundation, and a retired general officer of the US Army.
Quad-C invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. The firm was founded in 1989 and is headquartered in Charlottesville (www.quadcmanagement.com).
© 2017 Private Equity Professional | February 13, 2017
