Medpace shoots for $150M IPO as CRO sector booms

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Confidence in the strength of the CRO sector continues apace as Medpace files for a $150 million initial public offering.

The Cincinnati, OH-based company was founded 24 years ago and booked $332 million in sales for the 12 months ending March.

In its SEC filing, the CRO said: “We are one of the world’s leading clinical contract research organizations by revenue, solely focused on providing scientifically-driven outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries.

“We differentiate ourselves from our competitors by our disciplined operating model centered on providing full-service Phase I-IV clinical development services and our therapeutic expertise. We believe this combination results in timely and cost-effective delivery of clinical development services for our customers. Accordingly, we believe we are well positioned to continue to expand our market share and sustain margins in the growing $23 billion overall Phase I-IV CRO market.”

Currently, investment firms Cinven and MPI own around 75% and 25% of the company. An exit to the public markets would mark a fast turnaround for Cinven, which bought Medpace from private equity firm CCMP Capital Advisors back in 2014 for around $900 million.

The pharma services company filed a secretive IPO form with the SEC--something allowed under new rules for certain companies--back in March, according to Renaissance Capital.

The company plans to list on the Nasdaq under the symbol “MEDP.”

This highlights the boom in CRO and service company deals in 2016, with Bioclinica said by Reuters to be seeking a $1.3 billion deal; WCCT Global cancer CRO Medelis combining under a merger; March’s deal that saw Precision for Medicine acquire ACT Oncology; and May’s major deal that saw U.S. healthcare equity firm Amulet Capital Partners acquire CRO SynteractHCR.

Both Parexel ($PRXL) and Icon ($ICON) also gain boosts this month after Pfizer ($PFE) extended its research deals with the two CROS, putting any worries over cuts after the failure of its Allergan ($AGN) bid to bed.

- check out its SEC-1 filing
- see Renaissance Capital’s take

Related Articles:
Bioclinica seeking $1.3B sale: Reuters
WCCT Global and cancer CRO Medelis to combine under merger deal
After acquisition rumors, Amulet Capital Partners buys out SynteractHCR