Tigermed Acquires Japanese CRO Medical Edge to Expand Asia-Pacific Clinical Research Capabilities

Unlike other pharmaceutical companies that focus on the development of their own industrial chains, Tigermed, as the leading CRO in China, has remained active in the investment sector.

According to Tigermed’s 2023 annual report, its investment income reached RMB 691 million, comprising RMB 353 million from changes in fair value and RMB 338 million from investment returns. Additionally, available-for-sale financial assets measured at cost amounted to RMB 10.231 billion. In the previous two years, Tigermed ranked tenth in China’s venture capital rankings, placing it on par with domestic investment giants such as Tencent and Xiaomi.

On July 26, Tigermed acquired another company, announcing the completion of its acquisition of the Japanese CRO firm Medical Edge.

Medical Edge, established in 2015 and headquartered in Tokyo, Japan, is a contract research organization (CRO) specializing in EDC development, related system customization, data analysis, and biostatistics. Its core business services include data management, biostatistics, and customized solutions for EDC and ePRO systems. Renowned for its professional R&D services, rigorous scientific approach, and efficient operational management, Medical Edge has collaborated with numerous pharmaceutical and biotechnology companies, earning a strong reputation within Japan’s clinical research industry.

In clinical trials, electronic data capture systems, as a key information technology support, have a direct and significant impact on the management, progress, and quality control of the trials. RootAccording to research data from Bizwit Research & Consulting, the global market size for electronic clinical solutions was USD 10.9 billion in 2023 and is projected to reach USD 20 billion by 2028.

Tigermed has been strategically positioned in this field for a decade.

It offers the Clinflash suite of clinical trial information systems, including the Clinflash EDC (Electronic Data Capture) system, Clinflash ePRO (electronic Patient-Reported Outcomes) system, Clinflash IRT (Interactive Response Technology) for randomization and supply management, and the Clinflash Safety pharmacovigilance system. This suite has been widely deployed in large-scale registration and post-marketing clinical studies both domestically and internationally, serving renowned pharmaceutical R&D companies in China and abroad across multiple sectors, including innovative drugs, generic drugs, medical devices, and in vitro diagnostics.

Among them, Clinflash EDC has helped numerous pharmaceutical sponsors, medical device manufacturers, and contract research organizations (CROs) accelerate clinical trial processes and improve data quality. It has been applied in over 4,000 clinical research projects, including more than 100 large-scale Phase III registration studies.

Clinflash ePRO leverages mobile internet and cloud technologies to electronically collect clinical trial-related data from subjects, including medication adherence and symptom information. By replacing conventional paper-based subject diaries, it enables subjects to rapidly complete and upload data to the Electronic Data Capture (EDC) system, thereby addressing the limitations of delayed entry and potential loss associated with paper diaries.

For Tigermed, which has already established a strong presence in its specialized sector, this acquisition will leverage Medical Edge’s customer base and brand influence in Japan and the Asian market to integrate technological advantages and talent resources, thereby further expanding the company’s R&D service capabilities and business scale in the Asia-Pacific region. Medical Edge will also become a wholly-owned subsidiary of Tigermed Japan, providing high-quality biostatistics and electronic data solutions for clinical research in Japan.

Mr. Shiro Ueda, Founder and CEO of Medical Edge, stated, “Medical Edge has been deeply rooted in the Japanese healthcare market for many years, accumulating extensive practical experience in clinical innovation. This expertise will provide strong support to Tigermed in the field of clinical data services. Meanwhile, Tigermed’s global business network and resources will offer a broader platform for our development.”

Mr. Wu Hao, Co-President of Tigermed, stated, “Tigermed will fully leverage Medical Edge’s local advantages to build a more efficient clinical research data management system, provide customers with one-stop clinical research services, and enhance Tigermed’s global competitiveness.”

As the leading CRO in China, Tigermed ranks first nationwide in market share for clinical outsourcing services.In 2019, Tigermed held a 4.1% market share in China’s clinical outsourcing market and a 0.5% share in the global clinical outsourcing market. In 2021, its market share in China’s clinical outsourcing market reached 12.5%. In 2022, it became one of the top 10 CROs globally by revenue, accounting for 1.5% of the global clinical outsourcing market.

In 2023 alone, Tigermed facilitated the market approval of 22 Class 1 new drugs and 6 innovative medical devices. By the end of 2023, the company had provided services for more than 100 marketed Class 1 innovative drugs in China, accounting for 61% of all such drugs approved domestically during the same period; it had accumulated experience in over 800 clinical research projects for Class 1 new drugs, maintaining its leading position in China’s clinical CRO market for consecutive years.

Compared to its well-known core business, Tigermed has also thrived in its “side ventures.” Since 2014, Tigermed has been actively engaged in the investment sector.

Tigermed has invested in numerous renowned investment institutions, including Qiming Venture Partners, Winover Capital, Yunfeng Capital, Legend Capital, Yida Capital, Boyuan Capital, the AstraZeneca-CICC Healthcare Fund, the Shanghai Lingang Life Science Blue Bay Fund, and the Hankang Biopharma RMB Fund. Additionally, through its investment platforms, Tigermed has acquired stakes in multiple companies that have undergone initial public offerings (IPOs), such as Genor Biopharma,北海康成 (Beihai Kangcheng), and Zhiyun Health.

In addition, Tigermed has invested in Hangzhou Taikun Equity Investment Fund Partnership (Limited Partnership) through its subsidiaries Tailong Investment and Tigermed Equity Investment, for the purpose of investing in healthcare startups and venture capital funds. It also previously co-established Suzhou Taifu Huaijin Venture Capital Partnership (Limited Partnership) with Walvax Biotechnology and Qiaoxin Equity to invest in biotechnology and biopharmaceutical companies.

Notably, in April this year, Tigermed, together with the Chongqing International Biological City and Banan Hospital Affiliated to Chongqing Medical University, jointly launched the operation of the Chongqing Clinical Research Center.Leveraging the clinical base of Banan Hospital Affiliated to Chongqing Medical University, Tigermed’s professional team and international experience, and renowned principal investigators (PIs) across various clinical specialties, the center provides high-standard, high-quality, and efficient clinical research services for innovative pharmaceutical companies in Chongqing, across China, and worldwide.

According to data from BestMed, as of the first half of 2023, Tigermed’s investment portfolio comprised 158 companies in the healthcare industry and 59 funds. Tigermed’s 2023 annual report indicated that its investment income reached RMB 691 million, including RMB 353 million from changes in fair value and RMB 338 million from investment gains. Additionally, available-for-sale financial assets measured at cost amounted to RMB 10.231 billion.

As a CXO enterprise, Tigermed’s investments in companies across the industrial chain represent a win-win strategy. On one hand, leveraging its deep industry involvement and expertise, Tigermed can rapidly identify high-potential targets, generating investment returns or strengthening its own industrial layout. On the other hand, through these investments, Tigermed can secure future CXO orders from its portfolio companies, thereby earning additional revenue from providing essential services—akin to “selling shovels” during a gold rush.

References:

bioSeedin, “Tigermed’s Business Empire: Swallowing Like a Tiger”