Contract research organization ClinChoice received $150 million in Series E funding this week.
Why it matters: Private equity tends to fund most deals for CROs like ClinChoice, so it’s interesting to see such a large venture-backed deal in the industry, especially during times of market volatility.
Be smart: According to a 2021, the CRO market is expected to grow to nearly $90 billion by 2028, from $50.1 billion last year, at a compound annual growth rate of 8.5% report by The Insight Partners.
- The surge is fueled by the increasing complexity of clinical trials worldwide, as more trials are decentralized and working to integrate evidence from the real world.
Context: Private equity continues to dominate the clinical services financing landscape. In June alone:
Company details: Based in Philadelphia and Shanghai, ClinChoice provides clinical development tools to customers in the pharmaceutical, biotechnology and medical device industries in the United States, China, Europe and Southeast Asia.
- The company, which claims to have conducted more than 1,000 clinical trials, most recently raised $62 million in a Series D round led by Goldman Sachs Asset Management, according to PitchBook.
- It was formerly known as Fountain Medical Development and has around 3,000 employees.
Deal Details: China’s Legend Capital led the financing and was backed by Taikang Life Insurance, Sherpa Healthcare Partners and insiders including Lilly Asia Ventures and Apricot Capital.