Q2 2024 Clinical Research Sites

Q2 2024 Clinical Research Sites

Clinical research sites remain one of the most active M&A sectors across all of healthcare services. The sector is highly attractive to private equity firms for its strong industry tailwinds (e.g., high margins, cash rich pharma and biotech sponsors) and ability to bolster many operational levers on both the revenue and expense side of the equation (e.g., increased contract values, centralized corporate functions, economies of scale). COVID-19 also accelerated the presence of site management organizations (SMOs) that could complement an accelerated clinical process at speed and scale.

Many middle-market private equity firms are willing to come downstream and acquire clinical trial assets that would otherwise be too small from an equity check perspective. It is becoming increasingly common for PE firms to acquire platforms with just a few locations and pursue an aggressive M&A strategy to build density, scale, and diversify their therapeutic mix. The fragmentation of the market coupled with the amount of investment in the last 12-18 months will lead to significant consolidation through 2024 and 2025.

To print and download the full Clinical Research Sites Update report, please click below…

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