Thermo Fisher Scientific is building up the services it can offer to its biopharmaceutical industry customers with the acquisition of CorEvitas, a company that collects evidence about the safety and efficacy of therapies as they’re used in the real world.
Under deal terms announced Thursday, Thermo Fisher will pay $912.5 million cash to acquire privately held CorEvitas. Thermo Fisher said the offerings of Waltham, Massachusetts-based CorEvitas will complement those of PPD, the contract research organization it acquired two years ago in a $17.4 billion deal.
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While PPD provides clinical trial services for drugs still in clinical development, CorEvitas gathers data about products that have already reached the market. It does so with registries that track the care patients receive and the outcomes from their treatment. CorEvitas manages 12 registries, including nine in autoimmune and inflammatory disorders such as rheumatoid arthritis and inflammatory bowel disease. The company says its technology platform gathers structured patient clinical data from about 400 investigator sites and more than 100,000 patients followed. These registries provide objective data to pharmaceutical and biotechnology companies, giving them real-world insights into how their products are working.
“There is strong market demand for real-world evidence which improves decision making and reduces the time and cost associated with drug development,” Thermo Fisher Chairman, President, and CEO Marc Casper said in a prepared statement. “As the trusted partner, we continue to further differentiate our capabilities to help our customers accelerate innovation and drive productivity.”
CorEvitas is owned by Audax Private Equity, an investment firm with more than $16 billion in assets under management. Audax added CorEvitas to its healthcare portfolio in 2019, then proceeded with five add-on acquisitions that built up the company’s data intelligence platform. In addition to launching new registries, Audax said CorEvitas was able to enter new therapeutic areas and expand into international markets.
Thermo Fisher said CorEvitas is expected to generate about $123 million in revenue this year. It will become part of Laboratory Products and Biopharma Services, the largest of Thermo Fisher’s four business segments with $22.5 billion in revenue last year, according to the company’s 2022 annual report. That’s the same unit that added diagnostic testing company The Binding Site in a $2.6 billion deal that closed at the start of 2023. Thermo Fisher expects the CorEvitas acquisition will close by the end of this year.
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