Medpace

Activity
Contract research organisation
Transaction value
US$915 million
Acquired
April 2014
Sector
Healthcare

Business
Medpace is a global contract research organisation (CRO) providing management services to the R&D departments of pharmaceutical, biotech and medical device clients to help plan and oversee their clinical trials. It is committed to providing the most streamlined and cost-effective path to drug and device approval for its sponsors. The Group focuses on small to mid-size companies and has significant expertise in therapeutic areas such as metabolic, cardiovascular, oncology, anti-viral/anti-infective, central nervous system and medical devices.

Established in 1992, Medpace is headquartered in Cincinnati, Ohio and has global operations in over 45 countries, operationally connected through an innovative suite of proprietary technologies. It has over 1,700 employees with approximately 40% of clinical operations employees in Europe. In 2013, Medpace generated an adjusted EBITDA of US$94m.

Medpace has a strong market positioning and a highly experienced management team led by Dr. August Troendle, the founder of Medpace and current President and CEO. Dr Troendle and the Medpace management team remain significant minority investors alongside Cinven.

Strategy
Cinven's strategy is to assist Medpace in achieving greater market penetration across Europe and Asia, given the growth fundamentals in the CRO market and the increasingly global requirements for clinical trials conducted on behalf of pharmaceutical and biotech businesses.                                 

R&D expenditure by the pharma and biotech industries is increasing due to the growing number and complexity of clinical trials required to bring new molecules to market. R&D expenditure is most positive for smaller pharma and biotech customers, where Medpace is focused. In addition, CRO industry consolidation has created a gap in the market serving the mid-cap pharma and smaller biotech players.

Medpace has been rapidly expanding its presence in Europe and has the opportunity to further grow its business across Europe and Asia where Cinven, with its considerable European presence and dedicated portfolio team in Asia, has a strong track record of accelerating portfolio company growth.

Progress
Since Cinven’s acquisition, Medpace has increased its office space with a new location in London and expanded facilities in Poland and France to support a rapidly expanding EU market.

In August 2016, Medpace completed its successful IPO on the Nasdaq stock exchange. Fund 5 continues to hold a 56.5% stake in Medpace post IPO.