Calling it a mutually beneficial deal where both companies have carved out complementary niches, Chiltern, a global CRO, announced plans last week to acquire Theorem Clinical Research, with the combined company operating under the Chiltern name.
Leaders of both companies said they have signed a purchase agreement. They added that when the agreement is finalized in the next several weeks, London-based Chiltern will become the world’s eighth-largest CRO, with 3,700 employees in more than 45 countries.
“This is a direct response to client demand for a clinical research partner that can provide scientific and operating strengths globally, in a responsive and flexible way,” Chiltern CEO Jim Esinhart, Ph.D., who will serve as chief executive of the combined companies, said in a prepared statement.
For John Potthoff, Theorem president, the two companies have carved-out complementary niches. In a statement, he noted that in key areas, “Our capabilities will dovetail into current Chiltern operations.”
He said Theorem provides global expansion—most notably in China and Japan—as well as a new service offering medical devices and diagnostics, clinical analytics and clinical supplies. Based in Wilmington, N.C., with operations in the Americas, Europe and Asia-Pacific, Theorem is focused on analytic-based development, combination trials and personal-data applications to simplify complex trials.
Earlier this year, the company formed a strategic partnership with Biomedical Systems, a provider of centralized diagnostic services, for a broad range of capabilities that expand the suite of services available to Theorem’s clients worldwide.
Chiltern, a 34-year old company, is comprised of three business units: Chiltern Biopharma, with therapeutic expertise in respiratory, anti-infectives/vaccines, ophthalmology, dermatology and other specialty areas; Chiltern Oncology; and Chiltern Source, which provides tailored relationships for functional service partnerships, resourcing and staffing solutions.
The acquisition of Theorem is largely designed to meet client needs for a stronger mid-tier clinical research provider. The expansion provides scientific expertise and specialty experience to improve its ability to manage increasingly complex trials with a personalized approach, designed in partnership with clients. The impact on services, the companies stated, is expected to:
The planned purchase of Theorem follows several Chiltern acquisitions designed to deepen its service offering and expand its geographic footprint, which all have taken place in the past 13 months. Last September, Chiltern acquired Pacific Clinical Research, a Pan-Asian CRO based in Singapore that further strengthened the company’s oncology and anti-infective offerings. In July 2014, Chiltern purchased Ockham, a full-service CRO based in Cary, N.C., with oncology expertise across all phases. That deal augmented Chiltern’s existing late-phase capabilities in cancer research.
Esinhart, in a statement released when the Ockham deal was announced, said it was part of “a natural progression toward our strategic goal of becoming the premier specialized mid-tier CRO.”
Those two deals, when combined with Chiltern’s internal growth, expanded global employment by more than 600 employees, the company noted.
Terms of the Chiltern-Theorem acquisition, as well as the Ockham and Pacific Clinical Research deals, were not revealed.
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