TPG bets $75M on pharma service provider Precision for Medicine

Private equity giant TPG invested $75 million in Precision for Medicine, a recently formed company that partners with drugmakers to help them establish the value of in-development products.

The funds come from the firm's TPG Growth segment, which invests mid-size companies, and will help Precision for Medicine expand its client roster and raise its profile in the industry.

The company, founded in 2012, touts itself as taking a next-generation approach to drug development, working with its clients to map out a project's potential economic value and target patient population starting from the earliest stages of development. The goal, according to Precision for Medicine, is to bring ideas to market with fully formed value propositions.

"Precision for Medicine operates at the intersection of two of the fastest-growing areas in healthcare--precision medicine and value-based care," TPG Growth Partner Matthew Hobart said in a statement. "With a strong founding team and rapid organic and inorganic growth, the company is well-positioned to capitalize on the advances inherent in leveraging clinical, genomic and molecular data to optimize medical treatment."

For TPG, the investment follows a string of deals in the pharma services business. The firm was among the private equity giants that took over CRO giant Quintiles ($Q) in 2007, steering the company to a $950 million IPO years later. Earlier this year, TPG bought Aptalis Pharmaceutical Technologies, Allergan's ($AGN) former CRO division, with plans for more bolt-on deals in the outsourcing space.

- read the statement