Sale process underway for Pinnacle 21, clinical-data software platform

Pinnacle 21's niche software platform accelerates the FDA's approval process.

As software is increasingly utilized to make the drug development process more efficient, another such asset with a unique market position is seeking a buyer, PE Hub has learned.

A sale process is well underway for Pinnacle 21, whose clinical-data management software  helps participants in the life sciences ecosystem move through the regulatory review process, four people with knowledge of the process said. 

The process is being conducted by Fairmount Partners, a Philadelphia-based independent investment banking firm. 

Founded in 2008, Pinnacle 21’s niche software helps life sciences companies prepare and review submission data. Its software is used when making submissions to both the FDA and Japan’s PMDA, ensuring that submission data is compliant, useful and ready for review. 

The Blue Bell, Pennsylvania, company is projecting around the ballpark of $10 million in 2021 EBITDA on $20 million of revenue, a large portion of which is annual recurring revenue, some of the people said. 

As seen by high-growth data-driven clinical research assets like TriNetX, which Carlyle Group backed last fall, software companies like Pinnacle 21 tend to trade off of revenue, sources pointed out. 

The process has included a variety of participants, including pure play sponsors and strategics, sources said. 

Logical strategic suitors could include players such as Anju, Genstar Capital’s Advarra, Leonard Green & Partners-backed WIRB-Copernicus Group (WCG), Nordic Capital’s ArisGlobal, or GHO Capital’s Envision Pharma Group, some of the people said.

Investment activity across the broader pharma services remains robust, with assets commanding premium prices as biotech and pharma R&D spending only accelerates. Amid the covid environment, tailwinds, including the push to make the drug development process more cost-effective and efficient, have only accelerated.

Earlier this week, PE Hub wrote that Webster Equity Partners is readying a sale of CenExel Clinical Research, the US’s largest operator of independent clinical research sites.

Elsewhere, Thoma Bravo is buying Riverside Co’s Greenphire in a deal valuing the company at approximately $1.1 billion, sources familiar with the deal terms told PE Hub last week. Greenphire provides payment workflow automation solutions within the clinical trial process – both for research sites and patients

Pinnacle 21 could not immediately be reached, while Fairmount declined to comment.