INC Research to acquire Kendle
pharmafile | May 5, 2011 | News story | Research and Development | INC Research, Kendle, cros
Two contract research organisations INC Research and Kendle International are to merge to create a new major player in the market.
The US-based CROs are both well respected in their field, but do not have the scale to match the giants of the sector, led by Quintiles and Covance.
Now INC Research will acquire Kendle in an all-cash transaction worth around $232 million.
The companies say the merger will create a global CRO with “significant therapeutic capability and geographic diversity”. It will rank among the top-tier CROs based on size and scale, and the companies say it will be better positioned to handle large-scale global trials.
“Joining forces with INC Research is the right decision for our customers and shareholders. Combining our highly complementary assets will provide the scale and scope for the combined company to deliver outstanding global teams, therapeutic expertise and operational excellence for clinical trials of all sizes,” said Kendle President and chief executive, Stephen Cutler.
The transaction is expected to close in the third quarter, subject to approval by Kendle’s shareholders and customary closing conditions and regulatory approvals.
“The combination of INC Research and Kendle will enable us to deliver broader capabilities and reach a critical mass for the emerging drug development outsourcing and alliance partnership models,” said James Ogle, chief executive of INC Research. “Together, we bring complementary strengths and expand the breadth and depth of services and expertise that are most valuable to our customers.”
Kendle suffered a poor year in 2010, seeing its revenues decline by 20%, which pushed it into a loss of around $1 million.
Last year the company earned $448 million in total revenues, placing it far behind the biggest CROs, Quintiles and Covance, which each earn in excess of $2 billion annually.
Kendle is nevertheless one of the most highly respected CROs. A survey conducted by CenterWatch published in early May rated it as “excellent” and “good” by 84% of the investigative sites they manage. This put Kendle among the three most highly rated CROs, along with PPD and ICON.
Andrew McConaghie
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