West Lafayette-based Inotiv Inc. (Nasdaq: NOTV) announced plans to acquire Indianapolis-headquartered Envigo RMS Holding Corp. in a $545 million cash and stock transaction. dollars. The contract research organization says the agreement will provide a location for drug developers to access products and services.
Inotiv President and CEO Robert Leasure says the increasing complexity in disease research is creating additional demand for research models. He adds that continuous innovation in the biopharmaceutical sector is increasing the demand for specialized and disease-specific models.
“The complementary nature of Inotiv and Envigo should accelerate the movement of innovative drugs and medical devices through the discovery and preclinical development phases,” Leasure said in a press release. “Backed by deep in-house expertise and scientific capabilities, we are building a comprehensive contract pharmaceutical research solutions provider with a full suite of discovery and non-clinical services and research models in a single, one-stop shop, from discovery to the approval solution for drug developers.
Inotiv says Leasure will remain as president and CEO of the combined company, with existing executives and staff retained.
The deal still requires regulatory and shareholder approval, and is expected to close in the fourth quarter. Once the acquisition is complete, Inotiv says the combined company will have an enterprise value of approximately $1.2 billion.