Syneos Health® (Nasdaq:SYNH), the only fully integrated biopharmaceutical solutions organization combining a CRO (Contract Research Organization) and a CCO (Contract Commercial Organization), today announced an agreement to acquire Synteract, a full-service CRO focused on the rapidly growing emerging biopharma segment.
Synteract has built a leading reputation among emerging biopharma, providing deep therapeutic expertise in oncology, rare and orphan diseases, neuroscience, dermatology, and pediatrics. Synteract’s client base comprises primarily pre-revenue companies, a segment in which Syneos Health has growth opportunities. Synteract’s 700 employees across North America, Europe, Asia Pacific and Africa have supported more than 4,000 Phase I-IV clinical trials across 26,000 sites in more than 60 countries.
The acquisition will enhance Syneos Health’s leading position in the marketplace, particularly for serving customers across the small to mid-sized (SMID) category – further diversifying the Company’s customer base and expanding support to the high-growth pre-revenue segment. According to industry estimates, funding to the biotech sector has shown no signs of slowing down, remaining near all-time record highs. Syneos Health continues to experience strong SMID demand with double digit year-over-year pipeline growth.
The transaction provides significant revenue synergy opportunities, as Syneos Health brings scale and new capabilities to Synteract’s unique customer base while maintaining Synteract’s laser-focus on the emerging biopharma segment. Building on Syneos Health’s track record of delivering cost synergies, the Company will also leverage its global infrastructure and integration expertise to optimize operational efficiencies and drive improved margins.
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Upon the transaction closing, Synteract will maintain its brand, led by strong management, operating as a Syneos Health Business Unit.
“Synteract is one of the leading mid-sized, late-stage-focused CRO platforms with global reach and an attractive focus on the highest growth customer segment in the CRO space fueled by near-record funding levels,” said Alistair Macdonald, Chief Executive Officer, Syneos Health. “With Synteract, we will strengthen our leadership across the entire SMID category while we continue to drive growth among large biopharma customers. Importantly, we share operating and cultural philosophies built around finding the best combination of product, process and technology to fuel innovation. I look forward to welcoming Synteract to the Syneos Health family, as we collectively work to change patients’ lives.”
For Synteract customers seeking alternatives to traditional product development and commercialization options, they will also have access to Syneos One™, providing comprehensive end-to-end capabilities to maximize asset value.
“Joining Syneos Health combines our emerging biopharma expertise and expands our differentiated delivery model,” said Steve Powell, Chief Executive Officer, Synteract. “We are excited to join the Syneos Health team, as they provide increased global scale, service breadth and the technology infrastructure that will drive continued growth. On behalf of our management team, I thank our dedicated employees and customers who have made this combination possible, as well as Amulet Capital Partners for their significant support as an investor over the last several years.”
The Company expects to close the transaction by the end of 2020, subject to the satisfaction of customary closing conditions.
Latham & Watkins LLP is serving as legal advisor to Syneos Health. Jefferies LLC is serving as exclusive financial advisor to Synteract, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor.
Source: BioSpace
