In their announcement of the Parexel acquisition, EQT and Goldman mentioned Parexels function in the markets shift toward decentralized scientific trials, which use various innovations that allow research studies to be run from another location. The firms also kept in mind Parexels function in improving medical trial variety as CROs intend to make sure that these studies better show the client populations that will be served by a drug or gadget.
Parexel was established in 1982 and is led by Jamie McDonald, who prior to his role at the CRO was a senior consultant to EQT. EQT made its Parexel investment from its EQT IX fund.

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A pair of private equity companies are obtaining agreement research study company (CRO) Parexel for $8.5 billion, the current in a series of offers involving companies in this sector of life sciences.
EQT Private Equity and the personal equity company of Goldman Sachs Asset Management revealed the acquisition agreement Friday. The deal comes 4 years after Parexel was acquired by Pamplona Capital Management for about $5.5 billion, taking the then openly traded CRO private.
Parexel, which has double head office in Durham, North Carolina and Newton, Massachusetts, is a vendor to pharmaceutical and biotechnology business, running medical trials and providing other services that support the testing of medical gadgets and speculative drugs, the regulatory filings for these products, and their commercialization.
While the CRO sector has actually grown steadily, the market stalled last year as the pandemic halted numerous clinical trials. In their announcement of the Parexel acquisition, EQT and Goldman pointed out Parexels role in the markets shift towards decentralized scientific trials, which employ numerous innovations that allow research studies to be run remotely. The firms also kept in mind Parexels role in improving scientific trial variety as CROs intend to make sure that these studies better show the patient populations that will be served by a drug or gadget.
” We believe this financial investment will accelerate Parexels development as it builds on the companys global footprint, strong operational abilities and expansive healthcare network,” Eric Liu, partner and worldwide co-head of health care at EQT stated in a prepared statement.
The Parexel acquisition is not a complete surprise. Bloombergs unnamed sources said that Parexel creates about $450 million in annual sales.
The Bloomberg report came a week after Thermo Fisher Scientific revealed it would pay $21 billion to acquire PPD, a publicly traded CRO that reported $4.7 billion in 2020 profits. That offer followed the February statement that two openly traded CROs of comparable size, ICON and PRA Health Sciences, would combine in a $12 billion deal and operate under ICONs name and management group. That transaction closed on Thursday.
Parexel was founded in 1982 and is led by Jamie McDonald, who prior to his function at the CRO was a senior consultant to EQT. Parexels headcount is approximately 17,000. It conducts medical trials in more than 95 nations.
EQT made its Parexel financial investment from its EQT IX fund. The company said that with the Parexel transaction, the fund will be in between 55% and 60% invested.
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