PE HUB Healthcare Wire Highlights, 10.24.19

European firms prove a force to reckon with in eClinical

It’s Thursday, healthcare enthusiasts.

If you see me mingling tomorrow at McDermott’s Healthcare Services Private Equity Leadership Forum in NYC, don’t hesitate to say hello.

Before I get to your topic of the day, here are some quick highlights from the week:

21st Century Oncology has hit the auction block almost two years after emerging from Chapter 11 bankruptcy. Read my full story to learn how much the cancer-treatment company, currently owned by debt holders, could command in a sale as it continues down the road of recovery.

Elsewhere, Kelsey-Seybold Clinic, the integrated healthcare organization and risk-bearing entity in the greater Houston area, clinched a minority investment from TPG Capital.

Where the European firms are outplaying the Americans

In case you haven’t noticed, European buyout shops are kicking some major @$% in the eClinical space.

This universe of companies offer technology and technology-enabled services that support clinical drug research. One example is eCOA, or electronic clinical outcome assessments, through which patients, clinicians and caregivers use electronic devices to track and report patient outcomes.

Paris firm Astorg revealed this week it has joined fellow European shops Nordic Capital and Novo Holdings as an investor in eResearchTechnology, or ERT. The deal values the fast-growing clinical trial tech company at approximately $3.8 billion, I learned. Check out my full story.

The premium valuation is not only further proof of how hot the sector has remained. It reflects the level of knowledge, sophistication and aggressiveness coming out of the European buyer universe in the eClinical space.

If you take a step back and look at trades across the sector over the last few years, a large piece of the pie has gone to private equity groups across the pond.