AI-powered image analysis developer Resonance Health will buy private clinical trial site and research center, TrialsWest.
The deal will see Resonance pay A$4 million ($2.6 million) upfront for the Australian for the Perth, Australia-based clinical trial site, with a commitment to pay a further A$4 million subject to EBITDA performance targets being achieved during full-year 2024 to 2026.
TrialsWest founders Helen Pavitt, Michelle Davies and Peter Bremner will remain in key leadership roles for at least the next three years.
In a press statement Pavitt said “I am looking forward to joining Resonance Health and taking on the role of Vice President of the clinical trials business. Resonance Health has an excellent reputation in the provision of clinical trial services, and I see this as great platform for growth.”
Clinical trial ecosystem
Resonance framed the acquisition – which is expected to complete in the last quarter of FY24 – as part of a wider effort to build in the drug testing services market.
“This acquisition is a key plank in the company’s strategy of increased focus and commercial involvement in the clinical trial ecosystem and utilizing Resonance Health’s deep-domain expertise to deliver value for our global customers. This strategy is expected to result in year-on-year revenue growth and importantly it forms the basis of organic and acquisitive growth in revenue and profits in future periods.”
The deal also underlines increased demand for trials in Australia according to the firm, which noted that in 2019 95,000 people took part in over 1,800 trials – a 7% CAGR in the number of trials since 2015 and that industry sponsored trials carried out in the country were worth A$1.12 billion ($792 million).
Resonance also said it plans to expand TrialsWest with the addition of new clinical trial sites and to continue working on complementary acquisitions.
According to the takeover prospectus, TrialsWest is currently working on more than 25 clinical studies across a range of therapeutic areas. The document lists AstraZeneca, Pfizer, GlaxoSmithKline (GSK), Sanofi and Novartis among its customer base.
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