Thermo Fisher fronts over $900M for data intelligence company as M&A strategy takes shape

Thermo Fisher Scientific has given a glimpse into how its “disciplined capital deployment strategy” will work in reality, fronting close to a billion dollars to get its hands on real-world data intelligence company CorEvitas.

The deal will see the life sciences giant hand over $912.5 million for the Waltham, Massachusetts-based company. CorEvitas, which oversees around 300 employees, has developed a multi-therapeutic data intelligence platform to gather structured patient clinical data spanning more than 400 investigator sites and over 100,000 patients. It does this by managing 12 clinical registries, including nine autoimmune and inflammatory syndicated registries.

Justifying the hefty price tag, Thermo Fisher pointed to CorEvitas’ more than 20-year pedigree in partnering with pharmas and biotechs. “CorEvitas is well positioned to grow its revenue organically in the low double digits, with expected revenue of $110 million in 2023,” Thermo Fisher added.

“There is strong market demand for real-world evidence which improves decision making and reduces the time and cost associated with drug development,” Thermo Fisher CEO Marc Casper said in this morning’s release. “The addition of CorEvitas will further advance our capabilities to better serve our pharma and biotech customers and strengthen our value proposition.”

The company would be an “excellent strategic fit” for Thermo Fisher’s clinical research services provider PPD, Capser added. PPD was acquired by Thermo Fisher in another big bucks deal back in 2021, with the company handing out a whopping $17.4 billion.

Thermo Fisher has been quieter on the dealmaking side of things this year, with most of its expenditure falling under the umbrella of the $650 million bioprocessing investment announced in 2022. Still, the company reaffirmed in May that it has a “disciplined capital deployment strategy” that includes “strategic M&A.”

“Our proven M&A approach leverages rigorous selection criteria, disciplined decision-making and a strong integration process to better serve our customers and create value for our shareholders,” the company said in a statement to investors at the time.

CorEvitas is currently owned by investment firm Audax Private Equity, which celebrated today’s deal as a “tremendous outcome for all involved.”

“Thermo Fisher is gaining a great asset with a phenomenal management team, while CorEvitas will benefit from Thermo Fisher’s industry leadership, its global presence, and their deep relationships across healthcare,” Audax Private Equity Partner Joe Rogers said in a statement. “The combination with Thermo Fisher should only add momentum to CorEvitas’ impressive growth.”