INC Research and inVentiv Health Merge to Form CRO Worth $7.4 Billion

Late last week, global contract research organization (CRO), INC Research, and combined CRO and contract commercial organization (CCO), inVentiv Health announced their intention to merge companies, forming one of the top three CROs globally. The all-stock transaction is expected to be completed in the second half of this year.

“Customers are increasingly seeking simultaneous approvals and product launches in multiple markets worldwide,” said Alistair Macdonald, CEO of INC Research. “Through this strategic combination we are bringing together two of the most innovative and respected players in the field to create a leading global biopharma solutions organization with a full suite of clinical and commercial solutions to address the needs of biopharmaceutical companies, patients, physicians and payers.”

The combined company will have an estimated enterprise value of $7.4 billion, with shareholders from INC Research expected to take ownership of 53 percent of the merged corporation. In addition to being a top three CRO globally, the partnership will form the second largest biopharmaceutical outsourcing partner.

“As biopharmaceutical companies of all sizes face increasingly complex challenges to bring products to market, they are seeking comprehensive outsourced solutions across the clinical and commercial spectrum,” said Michael Bell, CEO of inVentiv Health. “The new company is purpose-built to address market realities where clinical and commercial must work together, sharing expertise, data and insights, to improve client performance.”

The companies say that the merger has a number of benefits, including offering outsourcing services from drug development all the way through to commercialization. The combined company will include over 22,000 employees in more than 60 countries, to serve customers located in over 110 countries.

Around this time last year, biopharmaceutical services company Quintiles merged with IMS Health. The all-stock deal was worth $9 billion, and allowed Quintiles to take advantage of IMS Health’s data assets.