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| Tom Pike, Quintiles CEO |
Under its private equity masters at Bain Capital and TPG Capital, Quintiles has been rapidly beefing up its clinical-to-commercial outsourcing operations around the globe. Now Bloomberg reports that the makeover may lead to one very big cash-out as Quintiles execs ponder filing an IPO.
Quoting a pair of sources "familiar with the situation," the business news service outlined a common scenario for private equity players. Quintiles has brought in a new CEO, Tom Pike, and acquired a host of little companies as it positioned itself as a one-stop-clinical shop as Big Pharma as well as biotech increasingly turned to outsourcers to complete the clinical trials needed for an approval. Sales last year exceeded $3.5 billion as the company's workforce swelled to 25,000 in 60 countries. And that kind of story could appeal to investors.
In just the last few months Quintiles has blueprinted plans for a big new R&D complex in Shanghai, while it announced plans to beef up commercial sales operations in Brazil. In the U.S. it's been using its Big Data expertise to cozy up with Big Pharma companies like Eli Lilly ($LLY).
The whole CRO industry has been undergoing a tidal wave of consolidation after private equity groups moved in to remold the industry, build profits and look for a payouts on some big gambles. So it wouldn't be surprising if Quintiles may be looking for the right moment to go public, an option that could look sweet for a money-making operation with a potential for rapid growth.
"I view the fact that they have a new CEO now as potentially a sign that they're preparing their next leg of growth or next strategy, which could include an IPO," Moody's analyst Jessica Gladstone tells Bloomberg. "An IPO could also be a way to reduce leverage and an exit strategy for the owners."
- here's the story from Bloomberg
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