George Clinical, based in Sydney and running drug and medical devices trials globally, has asked potential buyers to think about 33 per cent a year revenue growth and 55 per cent a year normalised EBITDA line growth in the six years to 2027.Both numbers were on a compound annual growth rate basis.
That would see George Clinical increase revenue to $252.9 million by FY27, while EBITDA would hit $72.6 million. Both would be a big leap from the $60.6 million and $8.2 million recorded in the financial year just ended. The numbers were contained in a confidential information memorandum sent to potential acquirers last week. Sources said George Clinical and its bankers at Bank of America and Lazard were calling for indicative bids next month.Tyre kickers have started trying to verify the forecasts, knowing it’s always in the sellers’ interest to put their best foot forward.
It is understood interested parties were told George Clinical had a $250 million contract book and revenue split across China, India, the rest of Asia, Australia and the US/Europe. The company has 20 years’ experience running clinical trials and more than 400 staff on its books. George Clinical is part of The George Institute for Global Health, which specialises in chronic disease research and is affiliated with the University of Sydney. It was set up as a separate contract research organisation and commercialisation arm in 2008.looking for private equity firms with other interests in the sector and offshore strategic buyers.George Clinical is the fifth Australian biolabs business to be offered for sale in the past 18 months.