contract research

Quad-C Invests in Pharm-Olam

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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

Amulet Acquires SynteractHCR

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Amulet Capital Partners has acquired SynteractHCR, a contract research organization that supports Phase I‐IV clinical trials for emerging to mid-sized biopharma companies, from Gryphon Investors.

SynteractHCR was founded in 1995 and, according to the company, is a top 20 global contract research organization. The company has specific expertise in the oncology, immunotherapy, infectious disease, endocrinology, cardiovascular and respiratory sectors. Since founding, the company has been responsible for over 3,500 projects that included more than 700,000 patients. SynteractHCR has over 800 employees in 21 countries and is based near San Diego in Carlsbad, CA (www.synteracthcr.com).

“The importance of CROs to the pharmaceutical and biotech industries has grown significantly in the last decade, and the current market dynamic is very favorable for middle market CROs, particularly those focused on small and mid-sized biopharma clients,” said Ramsey Frank, Partner and Co-founder of Amulet . “SynteractHCR will serve as a platform in the industry as we seek to invest in or acquire complementary businesses that will expand the company’s geographic footprint and areas of therapeutic expertise.”

Amulet invests from $25 million to $150 million of equity in companies active in the healthcare sector. Transaction structures include leveraged buyouts, restructurings or recapitalizations, and growth capital. The firm was founded in 2015 by Ramsey Frank and Jay Rose and is based in Greenwich, CT (www.amuletcapital.com). The buy of SynteractHCR is the first acquisition by Amulet since its founding.

“We welcome this new relationship with Amulet as they understand our positioning and the opportunities available to us,” said SynteractHCR CEO Wendel Barr. “New funding will allow us to enhance our full service capabilities, hire even more international clinical development experts to support global trials, and increase our ability to help our clients successfully navigate the complex drug development process.”

Gryphon Investors, which acquired SynteractHCR in 2008, makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $35 million to $100 million of capital in companies with sales ranging from $50 million to $400 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, health care and hotels. Gryphon is based in San Francisco (www.gryphoninvestors.com).

Capital One, NA and THL Credit provided debt financing for the transaction. Wells Fargo Securities and Raymond James & Associates were the financial advisor to SynteractHCR and Gryphon Investors.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-26-16

Nautic Exits Theorem Clinical Research

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Nautic Partners has completed the sale of Theorem Clinical Research to Chiltern International, a UK-based contract research organization.

Theorem Clinical Research is a full-service contract research organization (CRO) that conducts early phase, Phase II/III and late phase clinical trials for pharmaceutical, biotech and medical device and diagnostic customers. The company is based in King of Prussia, PA, and has more than 1,500 employees in 30 countries across North America, Asia-Pacific, Europe and Latin America (www.theoremclinical.com).

Nautic Partners acquired Theorem Clinical Research (then named Omnicare Clinical Research) in April 2011 from healthcare giant Omnicare.  “We are very fortunate to have partnered with the outstanding management team at Theorem,” said Chris Crosby, managing director of Nautic. “During our ownership period, the company grew its revenue by approximately 18 percent per annum by repositioning itself with a greater focus on small- and medium-sized pharma and biopharma companies. This portion of the market is underserved by the larger CROs, and Theorem’s focus on this segment helped drive the company’s expansion.  The revenue growth paired with the management team’s operational improvements also drove increases in profitability during our ownership period.”

Nautic Partners is a middle-market private equity firm with over $3 billion of equity capital under management. Nautic targets majority equity investments of $25 million to $75 million. Sectors of interest include business services, manufacturing, and healthcare. The firm was founded in 1986 and is headquartered in Providence, RI (www.nautic.com).

“Speaking on behalf of the senior management team, we greatly enjoyed our time working with Nautic,” said John Potthoff, chief executive officer and president of Theorem. “Nautic’s strategic guidance and disciplined approach allowed us to establish our leadership position in our target market niche.”

Chiltern International is a privately held contract research organization with 3,700 employees in 47 countries. The company was founded in 1982 and is based west of London in Berkshire, UK (www.Chiltern.com).

Robert W. Baird & Co. (www.rwbaird.com) served as financial advisor to Theorem, while Goodwin Procter (www.goodwinprocter.com) acted as legal counsel.

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-15-15

CCMP Capital Sells Medpace to Cinven

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CCMP Capital has sold its portfolio company Medpace, a contract research organization, for $915 million to European private equity firm Cinven. In 2013, Medpace generated an adjusted EBITDA of $94 million resulting in a valuation multiple of 9.7x. CCMP acquired Medpace in May 2011.

Medpace is a late-stage focused clinical research organization (CRO) that provides a suite of clinical trial services to pharma, biotech and medical device companies. Medpace focuses on small to mid-size companies and has expertise in therapeutic areas such as metabolic, cardiovascular, oncology, anti-viral/anti-infective, central nervous system and medical devices. The company’s Phase II – IV services include development plan and protocol design, project management, clinical monitoring, data management and analysis, regulatory submissions and post-marketing clinical support. The company also provides central reference laboratory services, bioanalytical laboratory services, human pharmacology (Phase I) services and imaging lab services. Medpace was founded in 1992 and is headquartered in Cincinnati with operations in 45 countries. It has over 1,500 employees with approximately 40% of clinical operations employees in Europe (www.medpace.com).

The management team, led by Dr. August Troendle, the founder of Medpace and current President and CEO, will remain significant minority investors alongside Cinven.

Cinven invests in excess of €100 million of equity in companies with enterprise values typically greater than €300 million Sectors of interest include business services, financial services, healthcare, industrials, consumer, and technology, media and telecommunications. The firm was founded in 1977 and is headquartered in London (www.cinven.com).

Cinven’s healthcare team has been focused for some time on the CRO industry as an attractive market in which to invest. Increased R&D spend by the pharma and biotech industry, due to the growing number and complexity of clinical trials required to bring new products to market, is expected to fuel strong growth for the CRO industry, especially for those operators that focus on smaller pharma and biotech customers, where the outlook for R&D spend is most positive.

“Cinven’s healthcare team identified the CRO industry as an attractive market in which to invest given its fundamental growth characteristics. The CRO industry consolidation has created a gap in the market serving the mid-cap pharma and smaller biotech players – where Medpace operates and where we intend to capitalize on organic growth opportunities,” said Supraj Rajagopalan, Partner at Cinven.

In addition, Medpace has been rapidly expanding its presence in Europe and has the opportunity to achieve greater penetration across Europe and Asia, where Cinven has a strong track record of portfolio company growth.

“Medpace has a highly experienced management team and a strong market positioning, with growth in Europe and Asia presenting a real opportunity for the business,” said Alex Leslie, Principal at Cinven. “The Cinven team is well placed to accelerate this growth given our considerable European presence and also the strength of our Asia portfolio team –which has been instrumental in the success of international businesses in the region.”

Cinven was advised by Barclays and Wells Fargo Securities. Medpace was advised by Jefferies LLC and Fairmount Partners.

Fairmount Partners (www.fairmountpartners.com) previously represented Medpace in the sale of control to CCMP in May 2011, and assisted them in acquiring CRO MediTech, a European medical device company, in 2012.

“Medpace is one of the best CROs in the world, and it has been our pleasure to work closely with Dr. August Troendle and his team for over 12 years, and we look forward to continuing our long and deep relationship,” said Neal McCarthy, Managing Director of Fairmount Partners.

Fairmount Partners specializes in assisting companies in mergers and acquisitions, capital raising and strategic advice. Fairmount completes most of its transactions in its key focus areas: Technology & Software, IT & Business Services, Healthcare, and Consumer & Industrial, and has completed transactions throughout North and South America, Europe and Asia. The firm is based in the Philadelphia suburb of West Conshohocken (www.fairmountpartners.com).

CCMP specializes in making buyout and growth equity investments in the United States and Europe. The firm typically invests $100 million to $500 million of equity per transaction in companies with enterprise values of $500 million to $2 billion. Sectors of interest include consumer/retail, industrial, healthcare, and energy. CCMP is headquartered in New York (www.ccmpcapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-25-14