Frank Winslow, a Partner at Quad-C, told us the Virginia-headquartered middle market private equity firm has been researching and pursuing investments in the CRO space for more than a decade.
During this time the industry has seen “quite a bit of consolidation,” he said, which has created a “real void in the market for independent, mid-tier CROs.”
As Outsourcing-Pharma.com previously reported, outsourcing companies are expected to witness “significant investments” from private equity and venture capital.
“The industry should benefit from tailwinds, as increasing costs for drug makers supports ongoing globalization trends,” explained Winslow. “The growing complexity of clinical trials also supports a company like Pharm-Olam.”
The investment marks the company’s first in the CRO industry, though Windlow said the deal fits into the company’s “sweet spot,” as it looks to bring a business-development mindset and pursue a number of different avenues for growth.
“We understand Pharm-Olam's competitive set and see a real opportunity to drive both organic growth and also pursue add-on acquisitions that can add expertise around new verticals or grow the company geographically,” he added.
The Texas-based CRO currently has 27 offices worldwide though Windlow said Quad-C will expand the company’s reach “to new end markets and new locations” through strategic transactions.
David Grange of Quad-C will join the Pharm-Olam board as Vice Chairman.
Terms of the transaction were not disclosed.