Beijing-based contract research and manufacturing company Pharmaron is paying $137.5 million in cash to buy up nonclinical CRO Absorption Systems.
This sees the publicly listed Chinese CRMO broaden its geographic footprint and deepen the "R" in its CRMO biz. It will absorb the company’s work with biotech, medical device companies and regulatory agencies that focuses on research and testing for small and large molecules, cell and gene therapies, ocular and medical device products.
Absorption Systems, based in the U.S. with facilities and labs in Philadelphia, San Diego and Boston, will also help boost Pharmaron’s work in DMPK/ADME and bioanalysis for both small and large molecules, particularly in transporters, human PK prediction and translational pharmaceutics.
“We are very pleased to have Absorption Systems join the Pharmaron Group, and this acquisition, once again, demonstrates our commitment to becoming a global leader in drug R&D services,” said Boliang Lou, Ph.D., chairman and CEO of Pharmaron.
“The addition of Absorption Systems further expands and strengthens our services and global network with strategic presence in life science hubs in the US. We have been impressed with the achievement by Absorption Systems and its high caliber team and look forward to an exciting future together.”
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This isn’t the CRMO’s first U.S. buyout; back in 2017, it bought out U.S. accelerator mass spectrometry specialist Xceleron to boost its radiolabeled sciences offering.
That deal came nearly a year after the CRO snapped up fellow contract org Quotient Bioresearch, which is based in the U.K., as it looked to broaden its reach both technically and geographically.
“Becoming part of the Pharmaron family is a great opportunity for Absorption Systems,” said Patrick Dentinger, co-founder and chief executive at Absorption Systems.
“The acquisition recognizes the quality and pedigree of the business we founded nearly 25 years ago and the deep scientific expertise of our team. The transaction is great news for the employees and customers, who will benefit from the added resources and more comprehensive services offerings through Pharmaron’s global services network. We look forward to embarking on the next phase of our development together and better serve our clients’ R&D needs.”