ERT, the global provider of health outcomes services recently taken private by affiliates of Genstar Capital, has moved swiftly to capitalise on its new financial resources by acquiring fellow US company invivodata, which specialises in electronic Patient Reported Outcomes (ePRO) solutions and consulting services.
There was no price tag on the deal, which came in the week after the Genstar affiliates completed their acquisition of ERT for around US$400 million. ERT announced a definitive agreement to take the private equity route for US$8.00 per share in early April, saying it expected the transaction to close during the third quarter of 2012.
The rapid move on invivodata, which recently integrated its consulting division into its portfolio of Clinical Outcome Assessment (COA) consulting services in the face of rising demand for COA data from regulators and other key stakeholders, “immediately positions ERT as a leader in Clinical Outcome Assessments”, the latter said.
The combined operation will be able to offer clinical-trial sponsors, contract research organisations (CROs) and other third-party vendors a portfolio of market-leading ePRO/COA solutions and scientific/regulatory consulting services “that is unrivalled in the industry”, ERT added.
Specifically, the invivodata consulting group bolsters ERT’s position as “the scientific thought leader” in health outcomes research while complementing its market-leading position in cardiac safety and respiratory-outcomes assessment, the new owner explained.
The deal also enhances ERT’s multi-mode ePRO product range by adding in “a suite of proven site-based and patient-friendly handheld devices that have already been validated to collect therapy-specific diaries, instruments and assessments”, it observed.
invivodata saw record growth in 2011, taking on more than 160 new clinical projects, the two companies said. Three consecutive years of increased bookings, revenue and profitability have underpinned a substantial rise in headcount, enabling invivodata to meet the growing needs of its worldwide customer base, they added.
Outcomes data market
Industry reports suggest that the market for gathering clinical outcomes data is set to expand by more than 50% over the next three years.
ERT believes it is “ideally positioned to grow in this segment and capitalise on its established track-record of innovation to create value for its sponsors and CRO partners with a suite of clinician and patient-centric solutions”.
For some time now, ERT has been working with sponsors and partners to establish a new model of delivering value through the centralisation of health outcomes data, noted chief executive officer Dr Jeffrey Litwin.