Trial Site Mavens: Edgemont Partners Matches Private Equity with Trial Site Organizations

Trial Site Mavens Edgemont Partners Matches Private Equity with Trial Site Organizations

As the clinical research space continues to adapt, advance and evolve, TrialSite chronicles a number of trends, including the ongoing entry of private equity into the sector fueling mergers and acquisition activity. Of course, there are differing types of trial site organization from major academic medical centers, to non-profit research institutes to hospitals and health systems and the traditional investigational site, often for-profit and dedicated to clinical trials. In this latter category, a change is afoot, much as in healthcare in the U.S. with a growing number of what TrialSite has referred to as “Super Site” organizations, private equity-based consolidators that expand their research beyond one geographic region and perhaps a few therapeutic area specialties to span many regions and fields. With richer capitalization than the traditional trial site organization, these firms invest in systems and processes that help transform the traditional trial site organization of yesterday toward a one that starts to look more like a sizable contract research organization (CRO). This transformation is made possible by access to capital via deal making—that is the financial services professionals that earn a living in this space—analyzing, evaluating and bringing together buyer and seller for ongoing transformation. The most influential of these deal making firms is Edgemont Partners

Milestone: 30th Trial Site M&A Deal 

Recently the premier healthcare investment bank, M&A and capital raising advisor focused entirely on health care organizations announced its 30th M&A transaction for a clinical research site organization, thereby extending its market leading position as the top ranked M&A advisor to site companies.

This impressive milestone was made possible by the closing of three more deals with each of the three largest independent U.S. clinical research site organizations, including advising on the platform acquisitions for two of these three market leaders.

Trial Site Deal Making Pedigree

TrialSite interviewed firm leader David Blume, back in Jan. 2019 for “Clinical Research Site Space: Will it Consolidate?” Co-founders Blume and Jeff Swearingen, along with growing team of bankers and support staff have led Edgemont’s position to establish the number one deal maker in the space—the mavens of trial site organization banking. 

The premier boutique investment bank has been around now for about 20 years and during that time has remained focused in healthcare, pursuing at least 100 quality deals totaling $30 billion in market value, according to Crunchbase. In a recent press release, the firm identified key platform deals, that is the trial site consolidator and their private equity partner as well as other deal types in this space.

  • Seven (7) transactions with Evolution Research Group (including the initial platform acquisitions by DFW Capital and subsequent sale to Liden Capital Partners)
  • Four (4) transactions with Vince and Associates Clinical Research (including the initial platform acquisition by Celerity Partners and sale to Altasciences)
  • Three (3) transactions with Velocity Clinical Research (including the initial platform acquisitions by Navimed Capital) and led by Paul Evans.
  • Three (3) transactions with Cenexel Clinical Research
  • Two (2) transactions with Wake Research (including its sale to M3 USA
  • Transactions with leading CROs, including Parexel, PRA Health (2), Premier Research, and CTI
  • Sale of the leading global Alzheimer’s Research Center

Clinical research site organizations advised by Edgemont include market leaders in the following therapeutic areas, study types and special populations:

Therapeutic AreasStudy Types/CapabilitiesSpecial Populations
Oncology
Central Nervous System
Gastroenterology
Women’s Health
Endocrine
Pulmonary / Respiratory
Ophthalmology
Dermatology
Vaccines
Rare/Orphan Diseases
Orthopedics
Allergy
Pain
Addiction
Clinical Pharmacology
Healthy Normal Volunteer
Renal and Hepatic
Medical Device
Invitro Diagnostics
Inpatient Psychiatry
Sleep Disorders
Post-Surgical / Acute Pain
Human Abuse Liability
Ethnic Bridging
Virtual, Decentralized and Home-based Studies
Ethnic
Elderly
Pediatric
Adolescent
Smokers
High BMI
Disease State
ADHD

Fragmented Market & Trend Toward Decentralized & Virtual

The clinical research site market remains highly fragmented and Edgemont sees continued market consolidation and shifts, including the use of virtual and decentralized clinical trial models accelerating in the current COVID-19 environment. Evolving models are being employed to coordinate an increasing amount of research site activities off-site, opening up new market opportunities. In addition, technology solutions are playing an increasingly critical role in clinical research studies at the subject level.

About Edgemont Partners

Now in its 20th year, Edgemont ranks among the most active and best performing independent healthcare M&A and financial advisors in the U.S. We focus solely on providing expert strategic advice and transaction execution to healthcare and life sciences companies, bringing a steadfast commitment to our clients, driven always to prioritize their best interests. Edgemont’s principals have executed 170+ transactions with an aggregate value of $65 billion+. Edgemont Partners Investment banking services are provided by Edgemont Capital Partners, LP, a registered broker-dealer and member of FINRA and SIPC.

Call to Action: For more information on Edgemont and how we can best serve you, contact Ben Hughes at +1 (646) 632-3967, or visit our website at www.edgemont.com.

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