LabCorp acquires Chiltern for $1.2 billion
Global life sciences company LabCorp has recently acquired global contract research organisation (CRO) Chiltern for $1.2 billion. The all-cash transaction deal will enable Chiltern to become part of LabCorp’s Covance segment.
With a mission to improve health and improve lives, LabCorp delivers world-class diagnostic solutions, and is “a pioneer in genomic testing and the commercialisation of new diagnostic technologies” in order to deliver world-class care. With an annual revenue of $9.5 billion, LabCorp has become one of the world's largest clinical laboratories by revenue.
Jim Esinhart, Ph.D., CEO of Chiltern explained: “Joining LabCorp and Covance will allow Chiltern to expand its collaborative approach to bring better, more personalised therapies to market for patients every day. Customers will benefit from the expanded capabilities this provides and our employees will have a greater opportunity to propel research into the future with strong, supportive partners."
Contract research organisation Chiltern has become a leader within clinical services and solutions, with engagement models for biopharmaceutical and medical device companies. Combined, the company will have a strong presence, serving established biopharma companies, with approximately 11,100 employees in the US alone.
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With an international presence, LabCorp will be further able to develop its leading diagnostics and drug development business globally, provide customised models for emerging biopharma clients and guarantee oncology expertise.
The company has recently released its second quarter results, which have seen its net revenue rise from $2.38 billion to $2.50billion. David P. King, Chairman and CEO at LabCorp explained: "We delivered a record quarter of revenue, adjusted operating income and adjusted EPS, led by outstanding growth in the Diagnostics business through a combination of excellent organic growth and strategic acquisitions.
The Drug Development business performed as we expected, highlighted by our third consecutive quarter of robust net orders and improving book-to-bill.”