Novotech buys US contractor NCGS citing client opportunities
Novotech says buying NCGS is a strategic move that will support Asian sponsors looking to run trials in the US.
The Australia headquartered clinical research organization (CRO) announced the acquisition last week, explaining that NCGS’ South Carolina base and 300-strong workforce will provide a strong base in the US.
Novotech CEO John Moller cited cross selling opportunities as a key motivation for the deal, commenting that, “This is a strategic move to provide US based expertise and infrastructure for our US clients wanting trials in APAC and the US, and for our APAC clients wanting US clinical programs.”
NCGS has run a wide range of trials but is focused on complex clinical development in therapeutic areas including oncology, hematology, infectious disease, and CNS disease, according to founder Nancy Snowden.
She also cited the firm’s flexibility as a strength, commenting that “Our lean organizational structure and nimble operational model with highly tenured staff have been specifically designed to overcome the challenges inhibiting our industry today. We have the ability to pivot in real time as the needs of the trial evolve.”
Growth plan
The takeover is in keeping with the growth plan Novotech outlined earlier this year when it said it would make acquisitions and embracing new technologies like AI.
In January, Novotech completed a $760 million fundraising round, which consisted of a $255 million private placement and a $505 million refinancing transaction.
Novotech said it would use the funding to “pursue further growth opportunities by M&A in geographical expansion as well as data, AI and tech-enabled offerings.”
Building in the US market would also fit with rumors that Novotech’s primary backer, the private equity firm TPG Capital, is thinking about an IPO for the Australian CRO.
TGP had planned to list Novotech in Asia last year, however, it abandoned the plan in September citing unfavorable market conditions.
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