Drug developers commonly deal with a host of CROs as they work their way from preclinical testing to first-in-human trials, a process designed to maximize the strengths of each contractor. But a piecemeal approach to early-stage development can lead to costly delays, according to Covance, which is pitching an all-encompassing offering it claims can seamlessly shuttle molecules from animal studies to Phase II.
A malfunctioning thermostat led to the deaths of 13 research primates at a Covance facility, according to authorities, and the CRO could be in line for federal punishment.
Covance got some bad advice when it agreed to a roughly $6 billion buyout from LabCorp, according to an investor lawsuit, which alleges that chief dealbroker Goldman Sachs had a conflict of interest all along.
Under pressure from cuts in reimbursements and a general malaise for doctor-ordered diagnostics tests, LabCorp's ($LH) $6 billion cash and stock deal for contract drug development player Covance ($CVD) might be the right diversification prescription to ease a financial headache.
Diagnostics giant LabCorp is buying its way into the upper ranks of the CRO business, signing a deal to pay $5.6 billion for Covance and create an end-to-end testing conglomerate.
LabCorp is diversifying. The big diagnostics player has swooped in to buy the contract research organization Covance for $6.1 billion in cash and stock, confident that a combination of its expertise with Covance's approach to contract drug development will make for a successful merger.
Covance has joined forces with Novartis to develop new ways to help drug developers quickly integrate and analyze huge swaths of study data.
Covance is teaming up with Frenova Renal Research, an arm of dialysis magnate Fresenius Medical Care, tapping the organization's expansive database to spotlight the most effective treatments for patients with kidney ailments.
Covance posted a strong revenue performance in the second quarter thanks to better-than-expected results from its early-stage development segment, but the CRO is inching back its full-year expectations to account for some outgoing assets.
As last week's BIO conference well illustrated, biotech companies go to great lengths to flaunt their assets in front of potential partners from Big Pharma. Global CRO Covance is developing a system it believes can make that process more efficient: an online platform that allows drug developers to securely list their up-for-license molecules for would-be collaborators.