Britain-based biopharma services company Ergomed has snapped up U.S. contract research organization MedSource to boost its offerings and geographic footprint.
Ergomed will add the Houston-based CRO into its business, boosting its rare disease and oncology services, as well around $20 million a year in contracts and revenue, with more than $41 million in order book future revenue, and new clients.
The deal, financials of which were not made public, will also “further accelerate Ergomed’s growth in the North American market,” according to a statement, with offices in Houston, Boston and Raleigh, North Carolina, in the U.S. and Newcastle upon Tyne in the U.K.
“The increased US presence, with the addition of over 110 US-based employees, is expected to drive substantial new awards in the region and increase Ergomed’s pipeline in both the CRO and PV businesses,” Ergomed added.
“We are delighted to have delivered on our strategic goals in 2020 with the expansion of our US footprint in both the CRO and PV businesses,” said Miroslav Reljanović, M.D., executive chairman of Ergomed.
“The addition of MedSource and its complementary expertise in oncology and rare disease will further establish Ergomed as a specialised services provider in the strategically important U.S. market, building on the successful acquisition and integration of Ashfield Pharmacovigilance (now PrimeVigilance USA) earlier this year. We look forward to developing the potential of this new business to offer truly global clinical research services to our international customer base.”
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“I am delighted to be joining the Ergomed Group and continuing my current role,” added Eric Lund, founder of MedSource, who will continue in his current role as president of the CRO after the acquisition but will no longer be CEO.
“We are confident that this is an important strategic step and natural fit for MedSource, as Ergomed is an exciting, fast-growing global company with a strong reputation in the CRO industry. Our own extensive experience in oncology and rare disease drug development and across product types, clinical trial phases and study designs will complement the services already offered to Ergomed’s international client base. The combined business will be of great benefit to our US clients and employees, providing a seamless service offering into Europe and globally.”