Divestment of Clinical Trial Business CMAX to I’ROM GROUP
PharmaVentures advises IDT Australia on the divestment of CMAX clinical trial business to the Japanese company I’rom Group Co. Ltd.
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OXFORD, UK, October 28th, 2016
PharmaVentures is pleased to announce that it acted as adviser to IDT Australia Limited for the successful divestment of CMAX, a dedicated clinical trials business, to the Japanese healthcare company I’rom Group Co. Ltd. for a minimum AUD 14,000,000.
The acquisition is subject to the satisfaction of certain conditions precedent, and as part of the agreed upon structure of the deal, IDT will establish and integrate the CMAX business within a new company (henceforth referred to as NewCo). I’rom Group will initially acquire 61% of the shares of NewCo; and I’rom Group and IDT will jointly manage NewCo through their 61% and 39% respective share holdings. This will allow I’rom Group to integrate the CMAX business and to learn from IDT’s experience in managing CMAX, paving the way for I’rom Group to acquire the remaining shares of NewCo over the next twelve months.
IDT will receive an initial cash payment of AUD 10,000,000 in consideration for 61% of the CMAX business. A second payment for the remaining 31% of the CMAX business will be a minimum of AUD 4,000,000 (payable at I’rom Group’s election in cash or a combination of cash and forgiveness of IDT shares). The second consideration payment may increase subject to an earn-out provision and a third payment on achieving a specific business milestone.
Stephen Waterman, Managing Director, PharmaVentures said; “We are delighted to have used our expertise in the CRO sector to assist IDT in its strategic move into the specialty generics space.”
Fintan Walton, Chairman and Chief Executive of PharmaVentures said: “This deal both establishes PharmaVentures as a player in the CRO M&A space as well as continuing to demonstrate its expertise in cross-border transactions in the Asia-Pacific region.”
For the past 24 years, PharmaVentures has acted as an advisor to over 700 global pharmaceutical and biotechnology clients in transactions; covering licensing, mergers, acquisitions, divestments and joint venture activities for companies.