Overview

Catalyst Clinical Research, a portfolio company of QHP Capital, acquired Genpro Research to expand global footprint and deepen service offerings

Significance

The demand for Clinical Research Organizations (CROs) has surged in recent years, with the global market projected to grow from $82 billion in 2023 to $188.5 billion by 2030, growing at a CAGR of 12.5%. Around 70% of pharmaceutical and biotech companies now outsource their clinical trials to CROs due to the trials’ increasing complexity, which has doubled over the past decade. CROs handle approximately 75% of late-stage trials, highlighting their crucial role in the drug development process. The rise of novel therapies and personalized medicine has further fueled the need for CROs, given their specialized knowledge and technological capabilities. The globalization of research and the importance of real-world evidence have also driven demand for CROs’ expertise in managing international regulations and leveraging big data for insightful outcomes. As the pharmaceutical and healthcare industries advance, CROs will remain essential partners, streamlining research processes, optimizing trial design, and ensuring compliance. Their pivotal role in driving medical innovation and improving patient outcomes is undeniable. With a robust market growth forecast and increasingly complex trials, CROs’ value in shaping the future of healthcare continues to grow.

Founded in 2016, Genpro Research (“Genpro”) is a next-generation services and technology partner for the pharmaceutical, biotechnology, and medical device industries. They are highly regarded in the industry for providing advanced solutions in biostatistics and programming, medical writing, and regulatory submissions. Their advanced approach of using machine learning and natural language processing algorithms to enable process automation made the ideal acquisition for Catalyst to expand their global footprint and broaden and deepen their service offerings.

Crosstree’s Role

Crosstree’s expertise in the clinical research space and deep understanding of Catalyst’s strategic goals helped the firm advise Catalyst in identifying Genpro as the ideal transaction partner through:

• Leveraging market expertise to identify the ideal partner to maximize synergies and optimize cultural fit to drive long-term growth
• Developing and communicating a value proposition that resonated with both parties
• Providing guidance to Catalyst regarding valuation and the structuring of the transaction, ensuring a well-organized and beneficial arrangement for both parties