New owner for Envigo
Inotiv, a US CRO specialising in nonclinical and analytical drug discovery and development services, has reached an agreement to acquire research models and services Envigo. The cash and shares deal gives UK-headquartered Envigo an enterprise value of about $545 million, and the combined company one of around $1.2 billion.
The merger, it is claimed, will “create a unique, full-spectrum provider of drug discovery and non-clinical development services along with a leading research model products platform”, while expanding the combined customer base to around 3,000 customers across pharma, biotech, and academia with “significant opportunity for cross-selling”.
This should close in Q4, subject to regulatory approvals and normal closing conditions. At this point, Inotiv and Envigo shareholders are expected to own about 64% and 36% of the combined company respectively on a fully diluted basis. Inotive CEO Robert Leasure, Junior, will remain at the helm.
“Evolving complexity in the disease research space is creating additional demand for research models, and continued innovation in biopharma is increasing demand for specialty and disease-specific models,” Leasure said. “The complementary nature of Inotiv and Envigo is expected to accelerate the movement of innovative drugs and medical devices through the discovery and preclinical phases of development.”