The clinical trials market, part of our newly formed Life Sciences R&D sector, has seen a shift in M&A deal volume over the last few years. The post-pandemic dealmaking frenzy has cooled, with acquirers now making more strategic and deliberate moves over the large-scale expansion of previous years.
According to data captured in the LevinPro HC database, deal volume was modest before the post-pandemic surge, with 12 deals in 2019, 14 in 2020 and 18 in 2021. Volume escalated more than 66% in 2022 when 30 deals were reported. It hit a high in 2023 when 43 acquisitions were announced. However, M&A activity fell 37% in 2024 with 27 deals. If activity continues at its current pace, the clinical trials deal volume will fall short of previous years; as of September 12, 2025, 15 clinical trials acquisitions have been announced. Currently, clinical trials accounts for 26% of the 58 Life Sciences R&D deals of 2025.
As in many other sectors, private equity (PE) plays a dominating role in the clinical trials market. In 2025, 60% of the transactions have been completed by PE groups and their portfolio companies. This is a drop from 2024 when more than 70% of deals were PE-backed. However, it is on par with 2023 when just shy of 60% of the deals were completed by PE firms.
PE’s presence in the clinical trials space comes down to a few reasons. To save money and speed up drug development, pharmaceutical companies have, more and more, begun to outsource clinical trials to third-party providers. This creates a large demand for companies that specialize in clinical trials. Additionally, there’s much less risk in buying a company on the R&D side than an entire pharmaceutical company, allowing for PE firms to enter the life sciences market with less risk.
No other buyer type has had a notable presence in the field throughout 2025.
There have been no transactions in 2025 with a purchase price. In 2024, the only transaction with a disclosed price was Audax Private Equity’s acquisition of Avantor’s clinical services business for $650 million. Over the last five years, disclosed spending has totaled more than $1.29 billion across nine deals.
In 2025, the only buyer to have announced more than one transaction is Flourish Research, a fully integrated clinical trial organization in North America backed by NMS Capital. Flourish has conducted more than 3,700 trials across more than 15 therapeutic areas and more than 60 indications. Since 2021, Flourish Research has announced 10 transactions, making it one of the busiest acquirers in the sector.
In February, Flourish Research acquired Diablo Clinical Research, a multi-therapeutic clinical research facility performing phase I-IV clinical trials and medical device studies. It is based in Walnut Creek, California and has conducted more than 1,000 trials across various therapeutic areas, including endocrinology, cardiovascular and metabolic studies.
In May, the company acquired Center for Advanced Research & Education, a multi-therapeutic research facility dedicated to advancing innovation in healthcare through conducting phase I-IV clinical trials. Founded in 1998 and headquartered in Gainesville, Georgia, the company has conducted more than 150 clinical trials across multiple therapeutic areas
While Velocity Clinical Research has made no deal announcements in 2025, it is still one of the more active buyers in the market. Like Flourish, it has reported 10 transactions since the start of 2021. Its most recent transaction was the acquisition of three European clinical trials companies: KO-MED Centra Kliniczne, which is based in Poland and The Pulmonary Research Institute and KLB Gesundheitsforschung Lübeck, which are both based in Germany.
Velocity Clinical Research supports global drug development by primarily conducting phase II and phase III clinical trials. The company has nearly 100 locations globally, including a technology hub in Hyderabad, India. Velocity Clinical Research was acquired by GHO Capital in April 2021.
Headlands Research has also shown prominence in the clinical trials space. Since 2021, it has announced nine transactions, with the bulk of them in 2023 (four deals). Headlands Research is a globally integrated clinical trial site organization. With a multinational network of 21 clinical trial sites, Headlands Research has successfully completed more than 5,000 clinical trials. It was founded in 2018 by KKR and sold to THL Partners in August 2025.
In July 2025, the company acquired CMRCenter, a clinical research site in San Juan, Puerto Rico, specializing in Phase II through IV clinical trials to advance medical treatments for diverse patient populations. This is the only transaction the company has announced so far this year.
Other active buyers over the last five years include The IMA Group (nine deals), Alcanza Clinical Research (five deals) and CenExel Clinical Research (five deals).
