- Metalmark Capital acquired a majority stake in CRO Premier Research from Indigo Capital, ECI Partners, and HarbourVest in late 2016, in a secondary buyout transaction.
- The investment is framed as growth-focused, with undisclosed financial terms and Premier’s existing management team remaining in place.
- Metalmark aims to scale Premier’s capabilities in biotech and specialty pharma, especially oncology, neuroscience, rare diseases, regulatory services, and enabling technologies.
- The deal reflects a broader wave of private equity investment and consolidation in the CRO sector, alongside transactions such as Cinven’s Bioclinica buyout and InVentiv’s PE-backed shift.
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The acquisition of Premier Research by Metalmark Capital in 2016 represents a secondary buyout by a private equity firm seeking exposure to the outsourced clinical trial (CRO) sector, especially in biotech and specialty pharma. Metalmark purchased the majority stake from Indigo Capital, along with ECI Partners and HarbourVest, indicating a shift in ownership aimed at scaling Premier’s platform. [4][1]
While financial details weren’t disclosed, the strategy is clearly growth oriented. Premier plans to leverage Metalmark’s capital and healthcare expertise to expand in therapeutic-specialized areas — particularly oncology, neuroscience, and rare disease — and improve customer-facing service, regulatory strategy, and technology offerings. This is consistent with CRO macro trends favoring specialization and end-to-end regulatory and clinical trial support. [1][9]
Management continuity suggests a value-add approach rather than restructuring: Ludo Reynders and the existing leadership stayed, likely to ensure operational stability and retain domain expertise. Metalmark emphasizes collaboration and building long-term enterprise value. [1][2]
Strategic implications include: heightening competitive pressure among CROs to offer specialized and integrated services; potential for Premier to pursue further add-on acquisitions to solidify capabilities (regulatory, data, others); and the attractiveness of CROs to PE investors seeking exposure to biopharma outsourcing. Given the timing (late 2016), this deal sits among multiple CRO-sector investments suggesting a wave of consolidation backed by private capital. [1]
Open questions remaining include: What were the specific financial terms (valuation multiples, control rights)? How has Premier performed since the transaction (growth in revenue, margin, global footprint)? What regulatory or technological investments were prioritized under Metalmark? What exit horizon does Metalmark envisage, and are further IPO or sale options realistic given the CRO market’s evolution?
Supporting Notes
- Metalmark Capital acquired a majority stake in Premier Research from Indigo Capital; other sellers included ECI Partners and HarbourVest. [4][1]
- The transaction is described by Premier and Metalmark as a “growth investment”; Metalmark will be taking a majority stake but financial terms were not published. [1]
- Premier Research’s existing management was to remain in their current roles post-transaction. [1]
- Metalmark and Premier emphasize focus on biotech and specialty pharma, with expansions in oncology, neuroscience, rare disease, regulatory services, and investments in enabling technologies. [1]
- Premier Research, founded in 1989, is headquartered in Morrisville, North Carolina; before this investment, it was backed by Indigo Capital among others. [2][9]
- The deal was expected to close by end of 2016 (Q4). [1][9]
- This investment was part of a broader trend with PE entering biopharma outsourcing: examples include Cinven’s buyout of Bioclinica (~$1.3B rumored), and InVentiv’s aborted IPO after PE investment. [1]
Sources
- [1] www.fiercebiotech.com (Fierce Biotech) — Oct 17, 2016
- [2] mergr.com (Mergr) — 2016-10-17
- [4] mergr.com (Mergr) — Oct 17, 2016
- [9] newyork.citybuzz.co (CityBuzz / Business Wire) — Oct 2016