U.S. oncology specialist Cancer Genetics will pay $12 million to buy out Australian contract research organization vivoPharm as it looks to bolster its offerings.
Cancer Genetics (CGI) says the deal will boost its position “as a premier leader for oncology discovery, in vivo and in vitro drug development and early phase clinical trial testing for biotechnology and pharmaceutical companies.”
It buys into vivoPharm, a firm that has spent 10 years offering discovery and preclinical services to support drug development, target validation and biomarker analysis, with a big focus on immuno-oncology.
The CRO currently works with more than 40 biopharmas across five continents, in more than 55 studies and trials. It’s led by Ralf Brandt, who will be “fully integrated as the flagship in CGI’s discovery services offering,” according to its new owner, serving as the president of this unit.
The deal closed this week, and sees its 32 staffers subsumed into CGI. The price paid, $12 million, includes $1.2 million in cash, with the remaining 90% in the form of shares of CGI common stock. The company has also signed an equity financing deal for up to $16 million to fund the takeover.
“The acquisition is expected to be immediately accretive, adding both revenue and income,” CGI said in a statement.
“The combination of capabilities is expected to create considerable business opportunities in both pre-clinical studies and immuno-oncology clinical trials, to further accelerate CGI’s strategy to be the premier partner of choice for oncology innovation and development from bench to bedside.”