Dive Brief:
- Thermo Fisher Scientific said Thursday it has reached an agreement to acquire CorEvitas, a Waltham, Mass.-based company that provides real-world evidence for pharma and biotech companies.
- Thermo plans to pay $912.5 million in cash to buy CorEvitas from Audax Private Equity.
- The acquisition is expected to complement Thermo’s clinical research business, CEO Marc Casper said in a statement.
Dive Insight:
CorEvitas has about 300 employees and manages 12 registries across specific therapeutic areas. The company, which expects revenue of $110 million in 2023, is poised to grow revenue organically in the low double digits, Thermo Fisher said.
Thermo Fisher expects the acquisition to help the company better serve its pharma and biotech customers and to be “immediately accretive” to its adjusted earnings per share by $0.03 in 2024.
“There is strong market demand for real-world evidence which improves decision making and reduces the time and cost associated with drug development,” said Casper, who is also chairman and president of the company. “As the trusted partner, we continue to further differentiate our capabilities to help our customers accelerate innovation and drive productivity. We look forward to welcoming CorEvitas to Thermo Fisher.”
Audax, which invested in CorEvitas in 2019, had been exploring options for the portfolio company, according to a July 4 article from Bloomberg. It had garnered interest from other pharma services companies and financial sponsors, but Thermo Fisher emerged as the leading bidder, Bloomberg reported, citing people familiar with the matter.
CorEvitas will become part of Thermo Fisher’s Laboratory Products and Biopharma Services segment. The acquisition is expected to close by the end of 2023, and is subject to customary closing conditions, including regulatory approvals.