Elligo Health Research, a clinical research and technology company, has raised $135 million in a new funding round led by Morgan Stanley Expansion Capital and Ally Bridge Group.
Existing investors, including Cerner, Norwest Venture Partners, Hatteras Venture Partners and Syneos Health, also participated in the Series E financing round.
Founded in 2016, Austin, Texas-based Elligo Health Research aims to expand patient access to clinical trials. It uses EHR data, technology and services to support all types of clinical trial designs — traditional, hybrid and direct-to-patient. The organization has access to the data of 150 million diverse patients.
“The clinical trials industry is experiencing a new phase of disruption,” said Melissa Daniels, managing director and general partner at Morgan Stanley Expansion Capital, in a news release. “There’s an opportunity to use technology, data analytics, and services to eliminate long-standing trial conduct pitfalls and bottlenecks that primarily impact patients.”
Daniels has joined Elligo’s board.
The company will use the new funds to purchase ClinEdge, a research practice management and clinical services organization. ClinEdge delivers site conduct and patient access solutions for clinical research sites, pharma companies and clinical research organizations.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
In addition to the acquisition, Elligo will further invest in its technology platform and develop new ways to use data to enhance how clinical trials are run.
“This commitment from Morgan Stanley Expansion Capital, Ally Bridge Group, and others will not only help us better serve our existing clients, but also empower us to expand our technology and services on a global scale,” said John Potthoff, CEO of Elligo Health Research, in a news release. “The net effect of that will be increased access to clinical trials as a care option for large numbers of patients. We will accelerate revolutionizing the way clinical trials are conducted from pre-identification of patients through healthcare to study enrollment, conduct, and study data delivery.”
Among Elligo’s existing investors is EHR giant Cerner, which has an established relationship with the company.
Last December, Cerner invested an undisclosed sum in Elligo Health Research. As part of the investment, Cerner also announced plans to enter into a commercial agreement with Elligo to offer additional clinical trial resources to providers in the Cerner Learning Health Network.
Photo: abluecup, Getty Images
