Trial enabler ClinChoice raises $150M

Contract research organization ClinChoice raised $150 million in Series E funding this week.

Why it matters: Private equity tends to finance the majority of deals for CROs such as ClinChoice, so it's interesting to see such a large venture-backed deal in the sector, especially during a time of market volatility.

Be smart: The CRO market is expected to surge to nearly $90 billion by 2028 from last year's $50.1 billion at a compound annual growth rate of 8.5%, according to a 2021 report from The Insight Partners.

• The rise is fueled by the increasing complexity of clinical trials worldwide, as more studies are decentralized and work to integrate real-world evidence.

Context: Private equity continues to dominate the funding landscape for clinical services. In June alone:

• New Mountain Capital bought Behrman Capital's Emmes, a government-centric CRO, for north of $800 million, Axios scooped.
• Lindsay Goldberg acquired a majority stake in founder-run CRO MMS Holdings.
• And Astorg bought global CRO Avania, Axios scooped.

Company details: Based in Philadelphia and Shanghai, ClinChoice provides clinical development tools to clients in the pharmaceutical, biotech and medical device industries across the U.S., China, Europe and Southeast Asia.

• The company, which claims to have powered more than 1,000 clinical trials, last raised $62 million in a Series D round led by Goldman Sachs Asset Management, according to PitchBook.
• It was formerly known as Fountain Medical Development and has roughly 3,000 employees.

Deal details: China's Legend Capital led the funding and was joined by Taikang Life Insurance, Sherpa Healthcare Partners and insiders including Lilly Asia Ventures and Apricot Capital.