North Carolina-based clinical research organization (CRO) Parexel has announced the execution of a definitive merger agreement, under which the company will be purchased by EQT Private Equity and Goldman Sachs for $8.5b USD. Parexel CEO Jamie Macdonald told Outsourcing-Pharma that other than fueling growth and business expansion, the company does not expect any huge changes.
“We remain focused on patient needs as a priority and delivering for our customers,” he said. “In particular we’re looking forward to further support for investment in areas where our customers need it most — real-world evidence, decentralized clinical trials, biostatistics, and data management.”
Macdonald added that he believes EQT and Goldman Sachs are most interested in funding the expansion of Parexel’s capabilities and services.
“We will benefit from their deep experience and history of successful investment in life sciences, including such companies as Certara, Aldevron, 4G Clinical, and CIOX/Datavant,” he added.
Further, Macdonald said, no significant changes are planned for staffing, beyond bringing on personnel as needed.
“The leadership and management team at Parexel are individually and collectively committed to the long-term success of the company under new ownership; as part of that, I will continue as CEO and as a board member,” he told OSP. “Additionally we look forward to expanding our talent base to serve growing customer and patient needs.”
Eric Liu, EQT partner and global co-head of healthcare at EQT, said, “We have followed Parexel closely during the past few years and have been impressed by the company’s development and trajectory. Our investment in Parexel reflects EQT’s thematic focus on the life sciences industry, as well as our commitment to partner with businesses that have a positive impact on society.”
Jo Natauri, partner and global head of private healthcare investing within Goldman Sachs Asset Management, commented, “We believe this investment will accelerate Parexel’s growth as it builds on the company’s global footprint, strong operational capabilities, and expansive healthcare network.”
Going forward, Macdonald stated, “As we continue in this new era of clinical development and focus aggressively on meeting our customers’ needs for innovation in such areas as real-world evidence, decentralized clinical trials, biostatistics and data management (and in key regions such as Asia/Pacific where we’re among the largest and longest-tenured CROs) we’re excited to be partnering with EQT and Goldman Sachs. We look forward to benefitting from their strong industry experience and to further accelerating Parexel as one of the world’s leading and fastest-growing CROs.”