ClinChoice raises $150M in series E round as CRO outlines growth plan and potential IPO

ClinChoice raises $150M in series E round as CRO outlines growth plan and potential IPO

Eli Lilly-backed CRO ClinChoice says its new $150 million investment will fund growth through acquisitions and internal expansion.

The Philadelphia-headquartered research services firm outlined its plan on Monday following the completion of a series E fundraising round in which Lilly’s China-based investment arm Lilly Asia Ventures, Legend Capital, Taikang Life Insurance, Sherpa Healthcare Partners and Apricot Capital all participated.

“With the new round of financing, we will further enhance our innovative service offering and continue business expansion by organic growth and M&A, in order to better serve our clients worldwide,” ClinChoice CEO Ling Zhen said in a statement.

A spokesperson for the company offered some more details to Fierce Biotech, including the possibility of an IPO. “The new financing can help us to obtain sufficient funds to support the planned growth and lay a solid foundation for a public listing in the near future, when the market condition permits,” they said.

In the meantime, the funds will help the company “to further expand our full-service trial management offering to our targeted customers, in key geography and therapeutic areas.”

“Also, we want to further enhance our traditionally strong functional service offering in biometrics and safety operation, by leveraging our strong global footprints,” the spokesperson added. “Inorganically, we will actively seek out for partners who can complement our service offering and/or geographic coverage for potential partnership and acquisition.”

“We are very positive on the growth outlook of the CRO industry,” said Hongbin Zhou, co-chief investment officer at Beijing, China-based Legend Capital. “As a rapidly growing CRO, ClinChoice has built an excellent platform combining global expertise with deep know-how across key local markets, to support innovation.

ClinChoice—which has its origins in Fountain Medical Development—last raised funds in 2019 in a series D round led by Goldman Sachs, in which Lilly Asia Ventures again took part as a co-investor.

Imaging partnership

News of the investment round comes four months after ClinChoice’s team-up with U.S.-based medical imaging and eClinical solutions provider Calyx.

The March accord saw Calyx—which used to be Parexel’s imaging business until it split from the CRO in 2021—named as ClinChoice’s preferred service provider.

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