K2 Medical Research and TPG Establish Partnership to Build a Leading Integrated Site Platform

Rhea-AI Summary

TPG, a global asset management firm, has announced a strategic investment in K2 Medical Research, a clinical trial site platform focused on CNS trials. Founded by Sean Stanton and Brandon Lenox, K2 operates multiple sites in Florida specializing in Alzheimer's, psychiatry, and liver disease trials. K2 has conducted over 150 studies for major sponsors such as AbbVie and Johnson & Johnson. This partnership aims to accelerate K2's growth and enhance its integrated site platform. K2's unique strengths include a diverse patient recruitment model, mobile research units, agile start-up processes, and fully integrated technology platforms.

Positive

• TPG's strategic investment provides significant growth opportunities for K2 Medical Research.
• K2 specializes in high-demand areas such as Alzheimer's, psychiatry, and liver disease.
• The company has completed over 150 studies for major sponsors, indicating strong industry trust and performance.
• K2 operates multiple clinical trial sites across Florida, indicating a robust operational footprint.
• The partnership leverages K2's diverse patient recruitment model, mobile research units, and advanced technology platforms.
• Experienced leadership with over 30 years in the field supports K2's operational success.

Negative

• Financial terms of the investment were not disclosed, limiting transparency for investors.
• Dependence on a number of high-profile sponsors could pose a risk if any sponsor withdraws.

Financial Analyst

TPG's strategic investment in K2 Medical Research signals a significant vote of confidence in K2's innovative approach to clinical trials, particularly in the central nervous system (CNS) space. From a financial perspective, K2's focus on multi-phase trials and strong relationships with leading pharma sponsors like AbbVie and Eli Lilly positions the company for sustained growth and potential high returns.

Key financial implications for stakeholders include the potential for increased revenue streams due to the high-demand therapeutic areas K2 specializes in, such as Alzheimer's and psychiatry. The involvement of TPG, a global alternative asset management firm, could also bring more sophisticated financial oversight and potentially better capital allocation strategies, enhancing long-term financial health.

However, it's important to note that the terms of the investment were not disclosed, leaving some uncertainty regarding the extent of financial gains for current investors. The partnership's success will heavily depend on K2's ability to maintain its growth trajectory while managing operational costs effectively.

Medical Research Analyst

This partnership between TPG and K2 underlines K2's established reputation in conducting multi-phase CNS trials, a challenging yet high-impact area in medical research. By leveraging TPG's resources, K2 could potentially accelerate its research capabilities and widen the scope of its clinical trials.

K2's model of operating several de novo clinical trial sites and its emphasis on diversity in patient recruitment underscores a robust commitment to inclusivity, which is critical for the generalizability of clinical trial results. Their Mobile Research Unit, “Wanda,” exemplifies an innovative approach to reaching underserved populations, potentially leading to more comprehensive data and improved outcomes.

However, the success of this partnership will largely depend on K2's ability to maintain the quality and integrity of its trials while scaling operations. Increased oversight and resource availability through this partnership could positively impact the research timeline and patient outcomes.

Market Research Analyst

The alliance between TPG and K2 Medical Research could significantly strengthen both entities' market positions. TPG's backing provides K2 with an enhanced capability to scale, which is critical in the competitive clinical trial landscape. This partnership might help K2 to amplify its unique selling propositions, such as its fully integrated technology platform and agile start-up process, giving it a competitive edge.

Market Impact: Given that K2 has already participated in over 150 studies with major sponsors, this partnership is likely to enhance its credibility and attract more high-profile research contracts. The emphasis on diseases with limited treatment options also positions K2 as a key player in niches with substantial unmet medical needs, potentially drawing increased investor interest.

However, market dynamics can be unpredictable and the success of this venture will depend on effective execution and the ability to manage competitive pressures. Investors should watch for updates on new trial initiations and partnership expansions as indicators of growth momentum.

SAN FRANCISCO & ORLANDO, Fla.--(BUSINESS WIRE)-- TPG (NASDAQ: TPG), a leading global alternative asset management firm, today announced a significant strategic growth investment in K2 Medical Research (“K2” or the “Company”), an integrated clinical trial site platform specializing in central nervous system (CNS) trials for leading pharma and biotech sponsors. TPG is partnering with K2’s management team to continue building a world class research platform. Terms were not disclosed.

Founded by Chief Executive Officer, Sean Stanton, and Chief Medical Officer, Brandon Lenox, DO, K2 operates several de novo clinical trial sites across Florida. The Company specializes in conducting multi-phase clinical trials in complex therapeutic areas including Alzheimer’s, psychiatry, and liver disease (MASH), among others. K2’s model is centered around strong site operators, and the Company has successfully differentiated itself by developing direct relationships with pharma and biotech sponsors, while executing an impressive de novo regional growth strategy. The Company has participated in more than 150 studies for over 35 sponsors including AbbVie, Eisai, Eli Lilly, Johnson & Johnson, and Roche.

“At the core of our healthcare investing strategy is to partner with and grow companies that are adding value to the healthcare system and enabling better patient outcomes,” said Matthew Hobart, Co-Managing Partner of TPG Growth. “Through its important clinical research work, the team at K2 is delivering solutions that benefit patients, physicians, and the broader research community. We have known Sean for many years and look forward to partnering with him, Brandon, and the K2 team on this next phase of their growth journey.”

“As we continue to grow, it is important for us to find a partner that not only brings significant expertise investing behind leading healthcare companies, but also shares our values and commitment to our patients and sponsors,” said Sean Stanton. “Brandon and I founded K2 to offer innovative and practical solutions to patients seeking treatment and to establish a new standard for how clinical trials are delivered. This is critically important work for the families and communities we serve, and we are thrilled to partner with the team at TPG to accelerate our strong momentum.”

"Our innovative approach is key to the work that we do every day, but what truly sets us apart is the dedicated team that ensures each of our patients receive the best possible care,” added Brandon Lenox, DO. “Building and growing our unique culture – grounded in respect, humility, compassion, and warmth – remains an essential part of our success. We see an exciting opportunity to build a multi-regional integrated site platform and are confident that TPG is the right partner to achieve our shared goals for K2.”

K2 has strategically partnered with the Central Florida community, focusing on key stakeholders dedicated to finding solutions for diseases with limited to no treatment options. Each K2 location boasts a sophisticated clinical trialist and strong scientist/medical leadership, forming a robust dyad as the backbone of the site. Led by a management team with 30+ years of experience, K2's unique strengths include:

• Patient Recruitment: Emphasizing diversity with a minority and underserved represented staffing model.
• Mobile Research Unit (“Wanda”): Bringing research directly to the community.
• Agile Start-Up Process: Ensuring swift initiation of trials.
• Fully Integrated Technology Platform: Seamless management from patient engagement to study completion.

These differentiators position K2 as a leader in clinical research that is committed to making a meaningful impact on the healthcare community.

Hank Heller (COO) and Lesia Hise (CFO) provided significant support to formation of the partnership. Foley & Lardner LLP served as legal advisor to K2. Latham & Watkins LLP served as legal counsel to TPG and Harris Williams served as financial advisor to TPG.

About TPG
TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $224 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com.

About K2 Medical Research
K2 Medical Research is a leading clinical research organization dedicated to advancing medical science through the efficient and ethical conduct of clinical trials. With a focus on quality and innovation, K2 Medical Research partners with industry stakeholders to drive medical advancements. We are dedicated to diversity, equity, and inclusion, and have established a company culture that prioritizes minority staff representation. For more information on K2 Medical Research, visit k2med.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240616750243/en/

Media

TPG

Julia Sottosanti

media@tpg.com

K2 Medical Research

Sandra Torres, BSN

407-818-1957

Sandra.Torres@k2med.com

Source: TPG

FAQ

What is the focus of K2 Medical Research?

K2 Medical Research specializes in clinical trials for central nervous system (CNS) diseases, including Alzheimer's, psychiatry, and liver disease.

What is TPG's role in the partnership with K2 Medical Research?

TPG has made a strategic growth investment in K2 Medical Research to help build a world-class integrated clinical trial site platform.

How many studies has K2 Medical Research conducted?

K2 Medical Research has conducted over 150 studies for more than 35 sponsors.

Which major sponsors have partnered with K2 Medical Research?

K2 has partnered with major sponsors such as AbbVie, Eisai, Eli Lilly, Johnson & Johnson, and Roche.

What are the unique strengths of K2 Medical Research?

K2's unique strengths include diverse patient recruitment, mobile research units, agile start-up processes, and integrated technology platforms.

What regions does K2 Medical Research operate in?

K2 Medical Research operates multiple clinical trial sites across Florida.

Who founded K2 Medical Research?

K2 Medical Research was founded by Sean Stanton, CEO, and Brandon Lenox, DO, Chief Medical Officer.

What does the partnership with TPG aim to achieve for K2 Medical Research?

The partnership aims to accelerate K2's growth and enhance its integrated clinical trial site platform.