inVentiv Health, the acquisitive US provider of clinical development, commercialisation and consulting services, has given a further boost to its functional outsourcing and contract research services with a definitive agreement to take over Kforce Clinical Research for US$50 million in cash.
Owned by Kforce Inc, a US-based professional staffing and solutions company operating in the technology, finance/accounting and health/life sciences sectors, Kforce Clinical Research offers functional outsourcing solutions to the pharmaceutical, biotechnology and medical device companies.The business, which its parent is selling off as it tightens its focus on core service offerings, will be combined with inVentiv’s existing functional service provider (FSP) and staffing businesses within the latter’s Clinical segment.
With more than 30 years’ experience and a broad portfolio of partners worldwide, the combined organisation will leverage inVentiv Health’s global reach, enabling it to meet clients’ strategic resourcing needs in more than 40 countries worldwide, inVentiv said.
Kforce will sell all of Kforce Clinical Research’s issued and outstanding shares of capital stock to inVentiv Health for an aggregate purchase price of US$50 million. Kforce expects the transaction to close at the end of March, subject to the usual conditions.
Once the acquisition is completed, inVentiv is projecting adjusted annualised revenues of around US$70 million, taking into account a previously disclosed contract loss by Kforce Clinical Research as well as anticipated wins and contract expansions.
The latter’s range of clinical services includes site management and monitoring; clinical project and programme management; clinical programming and data management; biostatistical analysis and reporting; pharmacovigilance; medical writing; regulatory affairs; and quality assurance and training.
With its “strong” clinical monitoring expertise, a customer-focused approach and an “impressive” portfolio of clients, Kforce Clinical Research “is an attractive complement to inVentiv’s existing services”, commented Paul Meister, chief executive officer of inVentiv Health.“This acquisition expands our capability across the continuum of FSP [functional service provision], staffing and CRO services, further enhancing our ability to deliver flexible, cost-effective solutions for our clients,” he said.
SDI Health deal
inVentiv Health also announced that the US Federal Trade Commission had approved its acquisition of IMS Health’s SDI Health promotional and medical audit businesses.
The syndicated offerings of the acquired businesses will be combined with the market research capabilities of Campbell Alliance, the management consulting firm acquired by inVentiv in January 2011 along with the the i3 clinical development businesses of Ingenix.
Last May, inVentiv Health announced a definitive agreement to take over fellow US company PharmaNet Development Group, saying the deal would put it among the top ranks of global contract research organisations (CROs).
David Dunkel, chairman and chief executive officer of Kforce, said the decision to sell the clinical research arm followed “an extensive review of our business” and reflected “the changing landscape in the pharmaceutical industry”.
Disposing of Kforce Clinical Research (KCR) “is a logical step for us as we continue to narrow our focus, streamline our business mix and concentrate our resources on our core service offerings”, Dunkel added.