NuChem Sciences and OmegaChem are merging to create what they consider to be Canada's largest contract research organization in chemical drug discovery.
The Québécois companies will combine forces with $37 million in funding from investors. Fonds de solidarité FTQ is ponying up $17.4 million, and government-sponsored Investissement Québec will give $10.1 million, which BDC Capital will match. HarveyCorp will purchase the CROs' buildings.
"With a new integrated service offer and their capacity for complex projects, NuChem and OmegaChem are now better placed to face growing global competition," said Dany Pelletier, executive vice president of investments for FTQ, in a statement.
The combined company will have 200 scientists and support staff and includes OmegaChem's manufacturing capabilities in organic, medicinal and process chemistry. The 33-year-old company boasts more than 145 chemical hoods.
RELATED: Busy week for CRO deals as Inotiv, CenExel tack on new buys
NuChem supports biopharmas in identifying and working on preclinical candidates in small-molecule drug discovery. The company, founded in 2011, also supports early chemical development.
No jobs will be cut as part of the merger, the companies said.