KATY, TX, Jan. 30, 2023 (GLOBE NEWSWIRE) — via NewMediaWire – Neutra Corporation (OTC PINK:NTRR), an emerging health and wellness research and development company, today announced the execution of a binding letter of intent to acquire Mercury Clinical Research, a privately-owned site management organization (SMO) comprised of a network of physicians conducting clinical trials for top-tier pharmaceutical companies. This acquisition will accelerate the Company’s development in the health and wellness and life sciences sector as well as be being accretive for its shareholders.
- The parties intend to enter into a binding agreement within the next 90 days, with the closing anticipated in the third quarter of 2023. Neutra expects to fund the acquisition with a combination of cash and equity to provide the Company with the optimum financial flexibility in the future. Completion of the transaction is subject to customary conditions, including but not limited to the following key conditions:
- Execution of the Definitive Agreement;
- Completion of mutually satisfactory due diligence; and
- Receipt of all required regulatory, corporate and third party approvals.
“We are very excited to take the first steps towards the addition of Mercury to the Neutra family,” said Sydney Jim, Neutra Chief Executive Officer. “Neutra believes there is a significant opportunity to increase the brand’s direct-to-consumer channel and create new revenue channels to strengthen our market position. Our mission is help improve health, and the Mercury leadership is in alignment with our vision for the marketplace.”
Mercury, under its current management, has grown over twenty percent year over year in the last six years, with a 2022 gross revenue of between $3 and $6 million with industry-commensurate gross margins and positive EBITDA. Mercury will become a wholly owned subsidiary of the Company and is expected to place executives in senior management positions. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.
“Our two leadership teams have been in discussions about the possible acquisition for some time, and believe this acquisition is representative of our vision and strategy to grow our brand portfolio, revenue and cash flow, ” said Oscar Buhay, Mercury Clinical Research Chief Executive Officer. “I believe we have great synergies between us that will make great strides in helping people.”
SMOs are rapidly becoming a bigger part of the pharmaceutical business as pharma companies have found them to be an increasingly valuable resource. SMOs were a $5.6 billion market in 2021. This could grow by 6.1% per year through 2030 thanks to increased research and development investments by pharmaceutical firms. SMOs offer clinical trial services to pharmaceutical companies and medical device companies. Collaborating with SMOs helps pharmaceutical companies get FDA approvals for medication, treatments, and/or devices.
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Medications like SARS-CoV-2 vaccines and treatments, flu vaccines, testing devices, Alzheimer’s treatments, etc., have been through trials aided by an SMO like the one Neutra intends to acquire, in order to become FDA approved before release to the public. In addition, SMOs also work with hospitals and private practices to provide alternative treatments available to help advance medicine.
NOTICE REGARDING FORWARD-LOOKING STATEMENTS
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words ‘believes,’ ‘expects,’ ‘anticipate’ or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company to differ materially from those expressed or implied by such forward-looking statements.
Source: Bio Space
