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Scoop: GHO puts Velocity Clinical Research on the block

Illustration of a hundred dollar bill with Benjamin Franklin dressed as a doctor and holding a prescription pill bottle.

Illustration: Victoria Ellis/Axios

GHO Capital is preparing to bring clinical trial services provider Velocity Clinical Research to market, sources tell Axios.

Why it matters: A recent surge in biotech funding will finance increased R&D, increasing demand for clinical trial site management services like VCR's.

Behind the scenes: Centerview was hired to run the process, which is anticipated to launch in Q2 or Q3, say the sources.

  • VCR generates EBITDA between $120 million and $160 million, per sources.

How it works: Founded in 2018, VCR provides clinical trial data and clinical research services to biopharmaceutical and contract research organizations.

  • The Durham, North Carolina-based company manages clinical trial sites across North America, focusing on infectious diseases, vaccine trials and general medicine therapeutic areas.

Catch up quick: GHO acquired VCR for a reported $500 million in 2021.

  • Under GHO's umbrella, the company completed a flurry of acquisitions, including a handful of Europe-based buys.
  • Per PitchBook, VCR has raised a total of $176 million for acquisition purposes.

The big picture: The clinical trial site market remains fragmented, with multi-site platforms or alliance networks accounting for just 4% of the market last year, according to a Harris Williams report.

Driving the news: Private equity has its eyes on outsourced pharma services — Arsenal Capital will reportedly pay up to $345 million to buy two divisions from contract research firm Fortrea Holdings, in a deal announced Monday.

Velocity Clinical Research declined to comment. Centerview and GHO did not respond to requests for comment.

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