Australian CRO makes a move across the Pacific for US acquisition
As the CRO industry continues to consolidate, another company is looking to get in on the multi-national action with its latest move.
Avance Clinical, an Australian-based CRO for biotech companies, has acquired US-based research organization C3 Research Associates, giving the company a solid foothold on North American soil.
The private equity group Riverside backed Avance’s move, and the new US operations are forecasted to generate $30 million to $40 million in revenue over the next two years. Avance said it will be making significant investments in the US operations, including growing the team to more than 120 people and leveraging its deep industry experience across a broad range of therapeutic areas, in particular oncology. The due diligence for the move took around six months, according to the company.
“Avance Clinical has been working with C3 Research Associates in recent years and they share a similar culture and focus on customer service and clinical excellence. This strong relationship made C3 Research Associates a natural acquisition choice,” Avance CEO Yvonne Lungershausen said in a statement.
According to Avance, the acquisition also will give biotech companies in both Australia and New Zealand, who are also in the early stages of development, a way to get their clinical programs in the US.
Likewise, the move also gives clients access to benefits on the Australian side as well. Avance has access to a 43.5% rebate on clinical trial costs that the Government of Australia gives to R&D initiatives.
Avance is not the only CRO making big moves. In July, Labcorp announced that it is spinning out its CRO business, known as Covance, eight years after its $6 billion acquisition. In the spring, Singapore-based Novotech acquired US-based NCGS to expand its global offerings to customers in the US.
Last year, Icon, a Dublin-based CRO, snapped up PRA Health Sciences for $12 billion in a move that shook up some of the higher echelons of the CRO market.