West Lafayette-based Inotiv Inc. (Nasdaq: NOTV) has announced plans to acquire Envigo RMS Holding Corp., headquartered in Indianapolis, in a $545 million cash and stock deal. The contract research organization says the deal will provide one location for drug developers to access products and services.
Inotiv Chief Executive Officer Robert Leasure says the evolving complexity within the disease research space is creating additional demand for research models. He adds continued innovation in the biopharma sector is increasing demand for specialty and disease-specific models.
“The complementary nature of Inotiv and Envigo is expected to accelerate the movement of innovative drugs and medical devices through the discovery and preclinical phases of development,” Leasure said in a news release. “Supported by deep, in-house expertise and scientific capabilities, we’re building a comprehensive contract pharmaceutical research solutions provider with a full spectrum of discovery and nonclinical services and research models into a unique, one-stop-shop, discovery-to-approval solution for drug developers.”
Inotiv says Leasure will remain as president and CEO of the combined company with existing executive-level leadership and staff being retained.
The deal still requires regulatory and shareholder approval, and is expected to close in the fourth quarter. When the acquisition is complete, Inotiv says the combined company will have an enterprise value of about $1.2 billion.