Pharmaron Beijing has acquired 100% of the equity of US-based scientific, non-clinical contract research organisation (CRO) Absorption Systems for up to $137.5m in cash.
Absorption Systems has its facilities and laboratories in Philadelphia, San Diego, and Boston.
The acquisition will boost Pharmaron’s fully integrated, end-to-end drug R&D service offerings across the world.
The deal will also consolidate Pharmaron’s position in discovery and development DMPK platform, using Absorption Systems’ expertise in DMPK/ADME and bioanalysis for both small and large molecules.
It includes transporters, human PK prediction, and translational pharmaceutics.
Moreover, using Absorption Systems’ capability, Pharmaron will be able to provide its partners with additional value to analyse cell and gene therapy products combined with the established services in the ophthalmology and medical device fields.
Pharmaron Chairman and CEO Dr Boliang Lou said: “We are very pleased to have Absorption Systems join the Pharmaron Group, and this acquisition, once again, demonstrates our commitment to becoming a global leader in drug R&D services.
“The addition of Absorption Systems further expands and strengthens our services and global network with a strategic presence in life science hubs in the US.”
For the deal, Strata Partners served as exclusive financial advisers while O’Melveny was the legal counsel for Pharmaron.
Absorption Systems co-founder and CEO Patrick Dentinger said: “The acquisition recognises the quality and pedigree of the business we founded nearly 25 years ago and the deep scientific expertise of our team.
“The transaction is great news for the employees and customers, who will benefit from the added resources and more comprehensive services offerings through Pharmaron’s global services network.”