INC Research to merge with InVentiv Health

Contract research organisation INC Research and commercial services firm InVentiv Health are to combine to create the second largest biopharmaceutical outsourcing provider.

The deal, which is expected to close during the second half of 2017 and values the new at around $7.4bn, comes seven months after the $18bn merger of Quintiles and IMS Health.

The latest service sector megadeal will see INC Research shareholders hold 53% to InVentiv’s 47%.

Once completed INC Research’s chief executive officer Alastair Macdonald will hold the same role in the newly-combined firm, with inVentiv Health’s CEO Michael Bell serving as its executive chairman.

Macdonald said: “Through this strategic combination we are bringing together two of the most innovative and respected players in the field to create a leading global biopharma solutions organisation with a full suite of clinical and commercial solutions to address the needs of biopharmaceutical companies, patients, physicians and payers.”

The new merger intends to create more effective clinical studies, deepen therapeutic expertise in areas such as cardiovascular, metabolic and respiratory diseases, improve access to data assets and partner with biopharmaceutical companies.

Bell said: “The new company is purpose-built to address market realities where clinical and commercial must work together sharing expertise, data and insights to improve clinical performance.

“We believe this merger has significant client advantages as it deepens our scale, scope and therapeutic expertise.”

The organisation will be headquartered in North Carolina, US operating worldwide and the companies will each contribute five directors totalling a board of 10 directors.