BioGenetics Capital invests $5.5M in Clinquest Group
financing round with Contract Research Organisation (CRO) Services
Group, Clinquest Group, in a move that gives the company access to
the fast-growing life sciences markets of Asia, in addition to its
American and European presence.
BioGenetics Capital's decision to invest in the CRO appears to be a shrewd one especially considering the global CRO market is estimated to be at $10 billion (€8.4 billion) and growing at an annual rate of 14 to 16 per cent.
Under the terms of the arrangement, BioGenetics made an upfront investment of $4 million. The investment group have the option to invest $1.5 million within one year.
BioGenetics Capital, based in Singapore, is a privately-owned investment company that specialises in investing in emerging life sciences companies.
"Through our investment in Clinquest, we look forward to expanding BioGenetics Capital's reach in the US and European biopharmaceutical markets, as well as continued expansion in Asian biopharmaceutical markets," said Kien Wong, a Director of BioGenetics Capital.
Wong's sentiments were echoed by Dr Cornelis Wortel, Founder, President and CEO of Clinquest, who made Asian market penetration a priority for his CRO.
"We intend to use part of this funding to increase and expand our offerings in pharmacovigilance, among other business areas. Furthermore, our connection with BioGenetics Capital gives Clinquest access to the fast-growing life sciences markets of Asia."
Asia is currently going through something of a renaissance regarding outsourcing. Several local investment groups and Indian pharma companies have set up CROs to cash on the opportunity. Most of the Indian CROs are still on the learning curve and developing basic capabilities for clinical trials.
Meanwhile, the other powerhouse, China reported a 4-fold growth in ongoing clinical trial projects from 2001 to 2003 (982 trials in 2001, growing to 4307 in 2003). All this has resulted in the CRO market in Asia growing to an estimated $1 billion in 2004 having grown at a Compounded Average Growth Rate (CAGR) of 9 per cent.
According to Frost and Sullivan, the Asian market is dominated by large multinationals like Quintiles, Covance, PPD, MDS and ICON.
Other regional players like Gleneagles CRC (Singapore), APEX (Taiwan), SiroClinpharm (India), EPS (Japan), and Novotech (Australia) bring with them an abundance of local experience and know-how.
The Clinquest Group is located in The Netherlands, is made up of wholly-owned subsidiaries: Clinquest, Inc, Clinquest Europe, and Clinical Trial Operations.
