WCG Clinical postpones $720M IPO until “conditions are more conducive”

Acquisitive WCG Clinical postpones its Nasdaq listing that would’ve seen it score an impressive valuation.

Last week, the acquisitive firm has announced it will be putting its much-awaited IPO on hold. This comes after the company had filed to raise $720 million by offering 45 million of its shares at a price range of $15 to $17, according to a regulatory filing. At the top end of its targeted price range, the IPO would have valued WCG at US$6.45 billion. At the mid-price, the company would’ve been valued at $6.1 billion – an impressive valuation for the Princeton-based firm which reported nearly half a billion in revenue for the year ended March 31. The company "may re-evaluate in the future when conditions are more conducive to sharing our unique story and market opportunity," added Donald A. Deieso, its executive chairman and Chief Executive Officer.

According to the company’s regulatory fillings, WCG's revenue for the three months ended March 31 jumped by about 30% to US$137 million. However, despite the impressive bump in revenue, the company reported a net loss of US$20.6 million for the same period – still an improvement in comparison to the US$30.1 million net loss reported a year earlier. Over the past nine years, WCG pulled off a remarkable 31 acquisitions. Its recent acquisitions include paying $36 million cash for the life sciences consulting firm Avoca Group back in April, $80 million for cardiac safety lab services company Intrinsic Imaging in June and $330 million for VeraSci in July. Since its founding, the company has supported over 5,000 biopharmaceutical companies and CROs with its end-to-end solutions.