In a significant move, Thermo Fisher Scientific announced on Thursday its agreement to acquire CorEvitas, a company based in Waltham, Mass., specializing in providing real-world evidence for pharmaceutical and biotech firms. The acquisition, valued at $912.5 million in cash, will be made from Audax Private Equity. Thermo Fisher's CEO, Marc Casper, stated that this strategic move will complement their clinical research business.
CorEvitas currently manages 12 registries focused on specific therapeutic areas, with a workforce of approximately 300 employees. Thermo Fisher foresees organic revenue growth in the low double digits for CorEvitas, which is anticipated to generate $110 million in revenue in 2023.
This acquisition is expected to enhance Thermo Fisher's ability to cater to the needs of its pharmaceutical and biotech customers. The company believes it will have an immediate positive impact on adjusted earnings per share, contributing $0.03 in 2024. Casper emphasized the strong market demand for real-world evidence, which aids in decision-making and reduces costs and time associated with drug development. Thermo Fisher aims to further differentiate its capabilities, accelerate innovation, and drive productivity through this partnership.
Before the deal with Thermo Fisher, Audax had been exploring options for CorEvitas and received interest from other pharma services companies and financial sponsors. However, Thermo Fisher emerged as the leading bidder, according to Bloomberg's report on July 4.
Upon completion of the acquisition, CorEvitas will become part of Thermo Fisher's Laboratory Products and Biopharma Services segment. The transaction is expected to conclude by the end of 2023, pending customary closing conditions, including regulatory approvals. Thermo Fisher is eagerly looking forward to welcoming CorEvitas into its fold and leveraging their combined expertise to deliver even greater value to their customers.
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