A Medical Device Daily
Centene (St. Louis) reported that its specialty company subsidiary, CenCorp Health Solutions , has acquired Cardium Health Services (Farmington, Connecticut), a chronic disease management company, for $12 million in cash with the potential of an additional $1 million if achieving certain financial targets in 2006 and 2007.
Cardium Health focuses on individuals diagnosed with coronary artery disease, congestive heart failure and diabetes, among others. The company offers its services to self-insured employers and other benefit plan sponsors.
William Scheffel, Centene's senior vice president and chief executive, specialty companies, said, “The addition of Cardium Health expands our specialty company platform into a full spectrum of disease states and complements our existing capabilities.”
Centene does not expect the acquisition to have a material impact on 2006 earnings.
Centene is a multiline healthcare enterprise providing programs and related services to individuals receiving benefits under Medicaid, including Supplemental Security Income (SSI) and the State Children's Health Insurance Program (SCHIP).
Kendle (Cincinnati) reported that it has signed an agreement to acquire the Phase II-IV Clinical Services business of Charles River Laboratories International (Wilmington, Massachusetts), creating, it said, “the world's fourth largest provider of Phase II-IV clinical development services.”
Kendle will acquire 100% of the stock of the Phase II-IV Clinical Services business for about $215 million in cash, the amount subject to working capital adjustments to be determined at closing.
Kendle said the acquisition strengthens its position as one of the leading global players in the clinical development industry, “adding attractive therapeutic expertise, diversifying its customer base and expanding its capacity to deliver global trials.”
The deal is expected to close in 3Q06, subject to customary closing conditions and approvals.
Kendle said it will finance the transaction with a combination of cash on hand and debt and said it has obtained a commitment for financing necessary to complete the acquisition from UBS Investment Bank, which is acting as Kendle's exclusive financial advisor in connection with the transaction.
The acquired operations will operate under the Kendle name.
“We are excited by this move, which is an important component of our overall growth strategy designed to significantly enhance our global competitive position and accelerate Kendle to a $500 million organization,” said Candace Kendle, PharmD, CEO and chairman of the company. “Our customers will benefit from our strengthened global project leadership capability, expanded therapeutic expertise in the fastest-growing areas of clinical development and enhanced depth in North America and a number of key European markets.”
Kendle said the acquisition adds about $103 million in unaudited net service revenues to its 2005 performance, representing significant growth relative to 2005 actual results and putting it ahead, it said, of its long-term strategic plan “to outperform the market as a leading global CRO.”
It said the combination will offer biopharmaceutical customers the benefit of a broadened therapeutic base, stronger global footprint and an expanded depth of global clinical development services. The move also strengthens the company's global project leadership expertise, which has been a cornerstone of its growth and success.