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Quad-C Management invests in Pharm-Olam International

Quad-C Management has closed an investment in Pharm-Olam International Ltd, a multinational, full-service clinical research organisation (CRO), serving the biopharmaceutical and medical device industries. Terms of the transaction have not been disclosed.

Based in Houston, Texas, Pharm-Olam has 27 offices worldwide and has supported clinical trials in over 60 countries. The Company’s European headquarters are based in Ascot, England. Pharm-Olam was founded in 1994 by Dr. Zev Munk, a physician, and Eugene Barg, both of whom have over 20 years of experience in the clinical research field. Dr Munk and Mr Barg are retaining a significant ownership stake in the Company.

“Pharm-Olam has established a superior track record of growth and execution, which resonated with Quad-C, as this is an industry that we have spent close to a decade investigating,” says Frank Winslow, a Partner at Quad-C. “Given the significant consolidation in the sector, Pharm-Olam is one of the few mid-tier CROs remaining that can offer small- and mid-sized biotech and pharmaceutical firms exceptional service, deep therapeutic expertise and a global presence. We look forward to building on these strengths to accelerate growth, while actively pursuing strategic acquisitions that bring new services and/or geographical capabilities to Pharm-Olam.”

The demand for the clinical CRO market has grown substantially over the past five years, driven by increasing costs and time required for pharmaceutical and biotech companies to commercialise new drugs, as well as ongoing globalisation trends and the growing complexity of clinical trials. The total CRO outsourced drug development market is approximately USD24 billion in size. The segment is expected to grow at a roughly 7 per cent compounded annual growth rate, according to Credit Suisse, which anticipates outsourced penetration will reach 50 per cent of the total drug development market by 2020.

“Quad-C’s knowledge of the CRO industry, coupled with the firm’s consistent track record in healthcare and experience working with owner-operated companies were key factors as we considered potential partners,” says Munk. "We are excited to work with Quad-C and to benefit from their capital and operational support to expand the Company and accelerate growth.”

Concurrent with the transaction, David Grange, who has been working with Quad-C for over a year, will be joining the Pharm-Olam board as Vice Chairman. Grange is a former CEO and long-time board member of PPD, one of the largest CROs in the world. He is also the former CEO and COO of the McCormick Foundation, and a retired general officer of the US Army.

The Pharm-Olam investment is the latest commitment in the healthcare sector for Quad-C. Other past healthcare investments include VMG Health, a full-service valuation firm focused exclusively on healthcare companies; Compassion First, a veterinary services organisation and its affiliated hospitals; Dental Care Alliance (DCA), one of the largest multi-branded dental practice management companies in the United States; and Joerns Healthcare, a leading manufacturer of equipment and provider of wound therapy solutions for the care and handling of patients in post-acute healthcare settings.

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