Private Equity Healthcare Acquisitions  June 2022

In June 2022, 85 private equity transactions were tracked in the healthcare sector, including significant activity in clinical research organizations, medical technology, and physical therapy. A primary focus is the $5 billion acquisition of Advarra by Blackstone and the Canada Pension Plan Investment Board, highlighting the growth of for-profit Institutional Review Boards (IRBs). The document notes that commercial IRBs now oversee approximately 70 percent of US clinical trials for drugs and medical devices, raising concerns among policymakers and bioethicists regarding potential conflicts of interest and the erosion of ethical oversight in human research.

• In June 2022, 85 private equity acquisitions and growth equity investments were tracked across the health sector, with notable activity in clinical research organizations (CROs), medical technology, and physical therapy services.
• Blackstone and the Canada Pension Plan Investment Board entered a definitive agreement for a majority investment in Advarra, valuing the research compliance company at $5 billion, up from a $1.3 billion valuation in 2019.
• Commercial Institutional Review Boards (IRBs) have seen a significant increase in market share, with an estimated 70 percent of US clinical trials for medical devices and drugs being overseen by for-profit IRBs as of 2016.
• The growth of commercial IRBs in the US is attributed to a lack of federal resources for hospital-based IRBs and a 2016 NIH policy change requiring a single IRB for multi-sited clinical trials, which took effect in January 2018.
• Advarra's services were heavily utilized during the COVID-19 pandemic, including reviewing 429 COVID-19 protocols across more than 2,500 sites and supporting all Operation Warp Speed Vaccine Trials.
• US lawmakers and bioethicists have expressed concern that the private equity model of consolidating IRBs creates inherent conflicts of interest that may prioritize the speed and volume of study approvals over the ethical protection of human research subjects.

APA

Private Equity Stakeholder Project (2022). Private Equity Healthcare Acquisitions  June 2022. https://pestakeholder.org/news/private-equity-healthcare-acquisitions-june-2022/

Chicago

Private Equity Stakeholder Project. Private Equity Healthcare Acquisitions  June 2022. 2022. https://pestakeholder.org/news/private-equity-healthcare-acquisitions-june-2022/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Private Equity Healthcare Acquisitions  June 2022 |date=22 July 2022 |url=https://pestakeholder.org/news/private-equity-healthcare-acquisitions-june-2022/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2022private, author = {{Private Equity Stakeholder Project}}, title = {{Private Equity Healthcare Acquisitions  June 2022}}, institution = {Private Equity Stakeholder Project}, year = {2022}, month = jul, url = {https://pestakeholder.org/news/private-equity-healthcare-acquisitions-june-2022/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }