From The Editor | August 7, 2015

As Chiltern Acquires Theorem, Study Continuity Remains The Central Priority

Ed Miseta

By Ed Miseta, Chief Editor, Clinical Leader

Chiltern_Bucket

Global CRO Chiltern continues to expand its internal presence, announcing that it will acquire Theorem Clinical Research, another global contract research firm. The company has signed a purchase agreement for the acquisition. The announcement comes on the heels of two expansions in 2014. The first was the acquisition of Ockham in July 2014, which added expertise in oncology and sourcing. In September the company announced the acquisition of Pacific Clinical Research, a Singapore-based CRO.

According to Chiltern CEO Jim Esinhart, the Theorem acquisition was made in response to client demand for a CRO partner that could provide scientific and operating strengths across the globe, but do so in a responsive and flexible way. The acquisition will bring together 3,700 employees of the two CROs working in more than 45 countries. The combined company will adhere to a stated philosophy of clinical trials “Designed Around you.”

The “Designed Around You” philosophy means that as the leading mid-tier CRO, Chiltern will provide specialized skills globally, combined with a superior level of responsiveness and flexibility to client needs and preferences. Chiltern and Theorem have both received considerable feedback from sponsors noting this is something the market values. At a cultural level, there is alignment between the two organizations, both in the corporate missions fostered and the values of employees.

Dr. John Potthoff, President and CEO of Theorem, notes both companies have carved out a niches in the market that are complementary to each other, even across some of the key geographies in which the companies operate. “In key areas, our capabilities will dovetail into current Chiltern operations – this is a mutually beneficial deal,” he states.

For example, Theorem’s clinical analysis capabilities will complement Chiltern’s robust biometrics offerings. Theorem’s excellence in medical device and diagnostics trials will also expand Chiltern’s opportunities in those domains, as well as in combination product trials that demand the execution of highly complex research worldwide.

In particular, Esinhart notes the acquisition will:

  • Improve Chiltern’s ability to manage complex trials
  • Add expertise in medical device to Chiltern
  • Add capabilities for clinical trial supplies to Chiltern
  • Enhance Chiltern’s clinical analytics’ scale and depth
  • Further enhance Chiltern’s specialization in oncology and other key therapeutic areas of excellence
  • Add depth to Chiltern’s U.S. and European platforms and bring a substantial Asian presence.

Chiltern has had a long history in Europe, and a global network that will be supplemented by Theorem’s strength in the U.S. and Asia, particularly China and India. The acquisition allows Chiltern to establish a larger and more localized presence in these key and emerging markets across the Asia-Pacific. Esinhart notes this presence will underpin stronger competencies in navigating region-specific cultural and regulatory aspects of global trials.

Although there are a couple areas of overlap between the two companies, Esinhart believes Theorem’s capabilities in those areas will reinforce operations, and in certain cases, expand the combined organization’s capabilities. He notes more information on this arrangement will be provided in the coming weeks.

For sponsors doing business with both firms, Esinhart notes current and potential clients can expect business as usual. Clients of both organizations have been made aware of the acquisition agreement and can be reassured that study continuity remains the central priority.

The combined company will operate under the Chiltern name. The acquisition is subject to regulatory and closing conditions, and is expected to close within the next several weeks.