Syneos Health (Nasdaq: SYNH) has completed its previously announced acquisition of biopharma CRO Synteract. With the acquisition, Syneos will add to its burgeoning portfolio that makes it the only fully integrated biopharmaceutical solutions organization in the biotech and pharma space.
As a full-service CRO serving the biopharma segment, Synteract will help complement and further Syneos’ goals of leading as a purpose-built organization committed to accelerating customer performance in the delivery of therapies to patients using the latest technologies and advanced business practices.
Syneos Health says that the acquisition will bolster its position as a leader in the marketplace, particularly in servicing customers across the small to mid-sized (SMID) category. The company aims to further diversify its customer base as well as expand support to high-growth pre-revenue segments.
Under its wings, Syneos already has a CRO and contract commercial organization (CCO) that work to bring together almost 24,000 clinical and commercial personnel in support of clients across more than 110 countries.
Funding for the biotech sector has been close to record highs and the upwards trajectory is expected to continue, according to industry estimates. Syneos Health says it continues to experience strong SMID demand with double digit year-over-year pipeline growth.
In a press release from Syneos announcing the Synteract acquisition, Alistair Macdonald, chief executive officer, Syneos Health, acknowledged the strong financial backing for the industry, saying, “With Synteract, we are answering the strong demand we are seeing in the small- to mid-sized space, fueled by near all-time high funding.”
In the deal touted to be worth $400 million, Synteract’s brand will remain intact but will operate as a Syneos Health Business Unit. It will continue to be led by a strong management team that includes current Synteract President Steve Powell.
Syneos itself arose out of a $7.4 billion merger between INC Research and inVentiv three years ago, rebranding as Syneos Health.
Synteract has a solid reputation in the emerging biopharma sphere, providing therapeutic expertise in areas including oncology, rare and orphan diseases, neuroscience, dermatology and pediatrics. Synteract’s client base largely consists of pre-revenue companies, a segment in which Syneos Health sees growth opportunities for itself. Having supported more than 4,000 Phase I to IV clinical trials in over 60 countries, Synteract is well-positioned to advance Syneos’ goals of extending into the SMID market.
“The specialized Synteract team will maintain their laser-focus on partnering with emerging biopharma companies, while benefiting from the scale and horsepower of Syneos Health. We welcome Synteract employees and customers to the Syneos Health family and look forward to collectively expanding our impact for patients,” said Macdonald.
It has been a relatively quiet year for mergers and acquisitions in the world of biopharma, likely due to the COVID-19 pandemic. Syneos Health’s acquisition of Synteract will be an interesting step forward as the company seeks to expand and diversify to widen its avenues of growth.