INC Research to acquire later-phase clinical trials business unit for $50M
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Contract research organization INC Research is acquiring the later clinical trials business operations of MDS Pharma Services.
The deal is worth $50 million, according to MDS (NYSE: MDS), the Canadian-based parent of MDS Pharm Services. The clinical trials group is based in King of Prussia, Pa.
The deal covers the Phase II, III and IV clinical operations of MDS Pharma. Some 800 employees are involved in those operations. If regulatory approval is received, INC will expand its operational footprint in several international markets, including South America, Asia and Africa.
Once the transaction is closed, INC will have some 2,000 employees and maintain operations in some 40 countries.
“We see the MDS Pharma Services Phase II-IV operations as an exceptional fit with our services and culture at INC Research,” said INC Research Chief Executive Officer James Ogle. “With this acquisition, we will unite two respected players with specialized international capability to form a new global leader with a full range of CRO services.”
The MDS Pharma group has conducted more than 700 later-phase clinical trials.
Last July, INC laid off some 3 percent of its workforce.
In Octoboer of 2007, INC announced plans to expand its work force by nearly 1,100 employees by the end of 2011.
INC will receive as much as $14.8 million in tax-related grants from the state of North Carolina, provided the company meets certain job-creation requirements.
'We are taking action to enhance shareholder value by focusing our business portfolio on areas where we believe we can expand market leadership," MDS Chief Executive Officer Stephen DeFalco said in a statement.
"While our investments in MDS Pharma Services' Late Stage have significantly strengthened the business, further success requires greater scale. By divesting our Phase II-IV operations, we will be better able to take advantage of our core competencies in Early Stage."
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