Syneos Health to buy Synteract

Syneos Health is acquiring US-based full-service contract research organisation (CRO) Synteract for an undisclosed sum.

The transaction is expected to complete by the end of 2020, subject to customary conditions.

Following closing, the target will retain its name and operate as a Syneos health business unit.

California-headquartered Synteract has 700 employees and spans a range of therapeutic areas, including oncology, rare and orphan diseases and dermatology.

Launched in 1995, the group supports emerging and mid-sized biopharmaceutical companies across all phases of drug development and has conducted nearly 4,000 studies in over 62 countries worldwide.

The acquisition will combine a CRO and a contract commercial organisation, allowing Syneos to strengthen its position in the small to mid-sized segment.

Synteract’s customers will also gain access to the Syneos One platform, which provides strategic, advisory and deployment services to help companies commercialise and bring their products to market.

Furthermore, the transaction will create revenue savings opportunities, as the buyer adds scale and new capabilities to the target’s client base.

The purchaser also plans to use its global infrastructure and integration expertise to optimise operational efficiencies and drive improved margins.

Steve Powell, chief executive of Synteract, said: “Joining Syneos combines our emerging biopharma expertise and expands our differentiated delivery model.

“We are excited to join the Syneos team, as they provide increased global scale, service breadth and the technology infrastructure that will drive continued growth.”

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The buyer is no stranger to the acquisition trail; In August 2018, it bought UK-based life science industry business consultancy services provider Kinapse for an undisclosed sum.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 4,690 deals targeting companies which provide research and development in the physical, engineering and life sciences industries announced globally in 2020 to date.

Bristol-Myers Squibb agreed to snap up US-based MyoKardia for USD 13.10 billion in the most valuable of these.

Other companies targeted in this sector so far this year include Grail, Momenta Pharmaceuticals and QuantumScape.

© Zephus Ltd

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