Pharmaceutical services company Medpace Inc is preparing for a potential initial public offering in the United States that could value the pharmaceutical contract research organization at more than $1 billion, including debt, according to people familiar with the matter.
Medpace, which is owned by private equity firm Cinven Ltd, has already filed a confidential IPO registration statement with the U.S. Securities and Exchange Commision (SEC), the people said this week.
Under U.S. President Barack Obama’s Jobs Act, which was signed into law in 2012, so-called “emerging growth” companies with less than $1 billion in annual revenue can file for an IPO with the SEC confidentially, allowing them to resolve any regulatory issues out of the public eye.
The filing does not guarantee that Medpace will go public, the people said. The company could still revise its IPO plans depending on market conditions in the coming months, the people added.
Medpace has annual earnings before interest, taxes, deprecation and amortization (EBITDA) of around $100 million, the sources said. The company is known for having some of the highest profit margins in its industry, they added.
The sources asked not to be identified because the IPO plans are confidential. Cinven declined to comment, while Medpace did not immediately respond to a request for comment.
Based in Cincinnati, Medpace offers a bundled suite of services to life sciences firms spanning the medical, operational, and regulatory aspects of developing drugs.
An exit to the public markets would mark a fast turnaround for Cinven, which bought Medpace from private equity firm CCMP Capital Advisors LLC in 2014 for around $900 million. CCMP purchased Medpace from its management team in 2011.
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