The Australian Competition and Consumer Commission (ACCC) has raised preliminary concerns about Blackstone Group’s proposed acquisition of I’rom Group Co Limited, citing potential impacts on competition within Australia’s clinical trial sector.
In a Statement of Issues published today (7 November), the ACCC outlined that the deal, which would unite two leading phase 1 clinical trial service providers—Nucleus Network (owned by Blackstone) and CMAX Clinical Research (owned by I’rom)—may substantially lessen competition in Australia. Together, these two entities hold 59% of phase 1 clinical trial beds in the country, an area critical for initial testing of new therapeutic products like medicines.
ACCC Commissioner Dr. Philip Williams highlighted the possible consequences of such a merger. “We are concerned that the proposed acquisition could significantly reduce competition, resulting in potentially lower service quality and higher prices for customers in Australia’s phase 1 clinical trials,” he stated.
The ACCC’s concerns also extend to entry barriers for new or expanding providers in the sector, with significant time and resources required to establish phase 1 trial units. Additionally, Blackstone’s involvement in Precision Medicine Group, which aids drug sponsors and coordinates clinical trials, raises issues around potential restrictions on access to services for competing contract research organizations.
The ACCC is inviting public feedback on the Statement of Issues until 21 November 2024. Further details about the acquisition and the ACCC’s findings are available on its public register under Blackstone Group (HK) Limited – I’rom Group Co Limited.
