Patient centricity, market access, and private equity fueled CRO M&A in 2024

A desire to cater to patients more effectively, the ability to access new markets, and private equity-backed expansions were the major M&A drivers in the clinical research space during 2024.

Market access

Efforts to access markets prompted takeovers in 2024 with Frontage Laboratories’ acquisition of Accelera Srl’s bioanalytical, drug metabolism, and pharmacokinetics businesses in January for example.

Also in January, French contractor Oncodesign Services (ODS) acquired Netherlands-based CRO ZoBio, citing a desire to expand its reach in the EU.

The same month also saw UK-based trial site management organization Velocity Clinical Research expand in Europe, adding five sites in Poland through the acquisition of KO-MED Centra Kliniczne.

The following month also saw a market-focused deal with Ireland’s Icon buying Clinical Research Management in a bid to win more government-sponsored research contracts.

Similarly, in April, Florida-based Alcanza Clinical Research acquired Puerto Rico counterpart FDI Clinical Research, adding a Phase I unit in San Juan and a second facility in the west coast city of Mayagüez to its network.

Also in April, Indian contract research organization (CRO) Veeda Clinical Research Limited acquired European firm Heads because of its global reach and oncology experience.

Likewise in May, American Clinical Research Services bought Elixia, a clinical trial network with operations in Florida, Massachusetts, Michigan, and Missouri. The deal included Elixia’s 40-bed, Phase I trial unit in Tampa, which specializes in studies that require renal and hepatically impaired patients.

In September, medical tech-focused CRO Avania acquired Spanish counterpart, Anagram, with the stated aim of expanding its reach in Southern Europe.

Furthermore, in mid-September, Labquality acquired Sweden-based Scandinavian CRO citing its reach and roster of small- and mid-sized pharma customers as the reason.

Patient-centric takeovers

Patient centricity, a healthcare approach focused on putting patients first, also drove takeovers in 2024. For example, in February, Greenphire acquired Clincierge, a provider of patient travel and logistics support.

Also in February, Telehealth and in-home diagnostics firm eMed paid $38 million for decentralized trials contractor Science 37, which delisted from the Nasdaq stock exchange and became a private company.

In the same month, Spectrum Science bought Continuum Clinical, a trial recruitment and engagement solutions provider

And in September, uMotif acquired trial site tech platform developer ClinOne and expanded its executive team. The acquisition combined ClinOne’s technology with uMotif’s electronic outcome assessment and patient reported outcome systems.

Private equity

The year also saw sustained private equity interest in the clinical services space, with notable investments from both established and new funds.

In March, private equity investor Otium Capital set up Enosium Life Science as an acquisition vehicle focusing on providers of contract research, regulatory affairs, market access, medical affairs, and marketing services.

Similarly, in June, Fortrea sold its enabling services segment, Endpoint Clinical, and Fortrea Patient Access businesses to private equity firm Arsenal Capital Partners.

In July, ophthalmics-focused CRO Ora was recapitalized by private equity investor The Vistria Group.

More recently, in October, Boston-based Audax Private Equity acquired Avantor’s clinical services business and rebranded it as Resonant Clinical Solutions.

The deal, which valued the business at $650 million, will see Resonant operate three brands: EPL Archives, MESM, and Therapak. The idea is to work with pharmaceutical, biotechnology, CRO, and diagnostic laboratory customers.

The month also saw Glide Healthcare-backed biomarker services firm Synexa Life Sciences buy Alderley Analytical. The deal will add bioanalytical services for discovery, preclinical, and clinical drug development to Synexa’s offering.

Other notable deals

This year also saw several bolt-on acquisitions in which established firms acquired counterparts to round out their service offerings.

For example, in January, iuvo BioScience acquired Promedica International, an ophthalmology-focused clinical CRO.

And in March, clinical trial contractor Calyx announced plans to buy US imaging biomarker developer Invicro from then owner Realm IDx.

In April, AI-powered image analysis developer Resonance Health acquired private clinical trial site and research center TrialsWest.

Similarly, in May, biometric services CRO Ephicacy Consulting Group bought data management tech firm Advance Research Associates (ARA). The month also saw cancer-focused CRO palleos healthcare GmbH merge with OCT Global SA and Precision for Medicine buy biometrics service provider Algorics.

In July, Emmes acquired Miimansa’s clinical entity modeling tools, which are based on advanced large language modelling techniques and generative AI.

At the same time, P95 BV bought 4Clinics, a provider of data management, biostats, regulatory affairs, and clinical operations services with experience in vaccines, immunotherapeutics, and medical device trials.

Also in July, Harvest Integrated Research Organization bought DeltaMed Solutions, its third acquisition since 2020.

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