Illustration: Annelise Capossela/Axios
Astorg has clinched a deal for Avania, a global contract research organization specializing in medical devices, three sources tell Sarah.
Why it matters: There are few platform-ready outsourced service providers dedicated to medical devices and medtech, Avania being one of them.
- The medical device segment is considered far behind the pharma industry in terms of its reliance on outsourced service providers during clinical trials.
- Fueled by end-market funding and innovation, sources predict the medical device category is following suit, and will increasingly turn to providers helping advance product development from concept through commercialization.
Details: The Netherlands-based Avania is said to have garnered a 23x multiple of EBITDA, which sources pegged at about $10 million.
- Avania was said to have conducted a fast sale process with a limited group of European sponsors.
- Larger peers in category include Archimed's NAMSA, Summit Partners-backed Veranex and Linden Capital Partners-backed RQM+. There's also a large perceived opportunity to consolidate the fragmented market of niche companies serving the Stryker's of the world.
By the numbers: Avania says it has assisted with 800-plus medical device and diagnostic projects, 350-plus clinical trials, and 350-plus regulatory submissions.
Context: Astorg was an obvious buyer for Avania, having already put significant capital to work around outsourced providers to the life sciences and pharma industry.
- Axios wrote last week that Astorg's deal for Open Health, a medical affairs company, commanded a nearly $1 billion valuation.
- Plus portfolio companies like Cytel, Clario, ERT, AltaSciences, LGC and Nemera.
What they're saying: As the small but growing cohort of medical device service platforms keeps growing, ultimately, one source tells Sarah, "I wouldn't be surprised if the large pharma CROs end up buying them."Astorg declined to comment.