RC Capital Completes Growth Recapitalization of CNS-Focused CRO Cognitive Research Corporation | Company
Partnership with RC Capital will support continued growth and capacity expansion
ST. PETERSBURG, Fla. and CINCINNATI and RALEIGH, North Carolina, Oct. 25, 2022 /PRNewswire/ — RC Capital, a healthcare-focused private equity firm that invests growth capital in innovative healthcare companies, today announced the closing of a growth and recapitalization investment in Cognitive Research Corporation (“CRC” or the “Company”), a leading, full-service, dedicated contract research organization (CRO) therapy, specializing in the area of the central nervous system (CNS).
RCC invested growth capital and partnered with management to acquire a majority stake in St. Petersburg, Florida-based CRC. The transaction allows CRC to accelerate its business development efforts, broaden the scope of its services to better serve its growing customer base and strengthen its global presence, all to meet the incredible demand that the Company experienced over the past few years. Founders, Dr. Tom Hochadel and Dr. Gary Kay, along with newly appointed CEO, CG Gillooly, and other members of management will retain a significant ownership position in the company.
Founded in 2006 by Dr. Tom Hochadel, Dr. Gary Kay, Dr. Thomas Crook and Steven Horohonich, CRC is a full-service contract research organization and technology company specializing in central nervous system product development ( SNC) for the pharmaceutical, nutraceutical, biotechnology and medical device industries. CRC works with sponsors, specialist clinical trial sites and CNS experts to bring new drugs to market through rigorous testing.
“RCC’s expertise and network will bring additional resources and business development opportunities to CRC, and this growth-focused transaction will help us accelerate the execution of our growing backlog,” said co-founder Tom Hochadel. . “We are delighted to partner with RC Capital to help CRC leverage the massive need in the pharmaceutical and biotech market for specialized clinical trial partners to help bring safe and effective CNS therapies to market,” adds the co. -founder Gary Kay.
“We are delighted to partner with RC Capital to implement a number of strategic initiatives, including expanding our services, operations and key recruiting in the United States and globally,” said CG “Chip” Gillooly, CEO. “We have met with many leading private equity firms that operate in the life science services space and chose RC Capital because of their impressive track record of successfully working with the management of healthcare companies. in the growth phase to better meet the needs of the markets they serve.We look forward to working with the RCC team to continue to build on the strong 17-year legacy established by the founders of CRC Pharmaceutical sponsors, small pharma and biotech sponsors in particular, crave a CRO partner who understands the unique needs and nuances of their business model and can translate that into world-class customer service and trial guidance. further to build a new CRO era.
“RC Capital seeks to partner with the founders and management teams of high-growth companies like CRC that deliver lasting value to the life sciences and healthcare industries and ultimately better results. for patient health,” said Rob Heimann, managing partner at RC Capital. “With a 17-year operating history, hundreds of trials managed in over 30 indications, and dozens of CNS NDA submissions, Tom Hochadel, Gary Kay and the CRC team have developed an experience a rare and important domain in the successful execution of clinical trials for pharmaceutical sponsors striving to bring new SNC products to market.We look forward to working with Chip and the entire CRC team in their next phase of growth.
“We are in a new era of CNS biotech innovation, and it has never been more needed,” says Patrick Dunnigan, Partner at RC Capital. “After decades of limited innovation by the pharmaceutical industry, significant advances have recently been made in understanding the structure and functions of the central nervous system, leading to significant investments in the discovery of new drugs to treatment of CNS disorders. Neurodegenerative disorders and mental health disorders, which have a significant impact on society, have been the focus of particular attention. We look forward to helping advance CRC’s mission to helping our clients bring important and innovative therapies to market for the benefit of patients around the world.
Heimann and Dunnigan will join the CRC Board of Directors. In addition, CRC has appointed Jeff Williams as Executive Chairman of the Board. Jeff is a seasoned healthcare executive. He previously served as CEO of Mindpath Care Centers, a behavioral health company, and founder and CEO of Clinipace, a biotechnology-focused CRO.
Financial terms of the transaction were not disclosed. McGuireWoods LLP provided legal advice to the RCC and Wyrick, Robbins, Yates and Ponton LLP provided legal advice to the CRC.
About the Cognitive Research Society
Cognitive Research Corporation’s mission is to support innovative companies that develop new drugs and therapies to improve mental health and neurological disorders. As a leading clinical research organization (CRO) and cognitive assessment technology company in neuroscience, CRC works with sponsors, specialist clinical trial sites and CNS experts to push new drugs through rigorous testing to support FDA submissions and eventual market introduction.
For more information, visit www.cogres.com.
About RC Capital
RC Capital (RCC) is a healthcare-focused growth capital firm that strives to partner with high-potential healthcare companies and leaders. We are committed to investing in the good side of healthcare, building businesses that enable clinicians to improve the delivery of care and advance experiences and outcomes for patients around the world. We seek to be a business partner first and a capital provider second, leveraging a network of deep healthcare relationships built over our 28-year operating history. For more information, please visit www.rccapital.com.
Contact person: – RC Capital
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