GHO Capital seeks over $1Bn for biotech firm FairJourney
LONDON, UNITED KINGDOM — Private equity firm GHO Capital has put contract research organization (CRO) FairJourney Biologics (FairJourney) for sale for more than €1 billion (US$1.08 billion).
FairJourney Biologics has teamed up with major corporations such as Johnson & Johnson and biotechnology firm Argenx.
The firm has been instrumental in the development of 14 antibody treatments currently under clinical trials. These medicines aim to fight life-threatening diseases, including cancer and autoimmune disorders.
FairJourney Biologics earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to surge by 50% to €45 million (US$48.8 million) this year.
The sale comes amid a trend in the pharmaceutical industry to rely on CROs for R&D and production. In 2024, around 50% of clinical trials are expected to be outsourced, paving the way for growth in the CRO segment.
CROs like FairJourney will be instrumental in the development of medicines and their delivery to the market. A successful sale could pave the way for more outsourcing pacts in the industry.
