PAREXEL Announces Acquisition of HERON Group LTD
News May 07, 2013
PAREXEL International Corporation has announced that the Company has acquired all of the outstanding equity securities of the HERON Group LTD (“HERON”), a life sciences consultancy which provides evidence-based commercialization services to support biopharmaceutical companies throughout the lifecycle of their products.
HERON has expertise and methodologies spanning a wide range of services, including strategic market access planning, systematic reviews, economic modeling and evaluation, pricing, reimbursement strategies, global value dossier writing, and engagement with Health Technology Assessment authorities.
HERON was founded in 1999 and works with more than 50 biopharmaceutical and life sciences companies globally.
With headquarters in Luton, United Kingdom, and additional offices in India, Sweden, and the United States, HERON employs approximately 140 individuals.
Prior to the sale, HERON was privately owned. The purchase price was approximately $24 million (which was adjusted at closing to reflect HERON’s cash, indebtedness, and working capital balances at closing), plus the possibility of an additional $14.2 million over twenty-six months if specific financial targets for HERON are achieved. The acquisition was funded through use of existing cash.
Josef von Rickenbach, Chairman and CEO of PAREXEL stated, “Given the highly competitive and constantly changing global healthcare landscape, demonstrating product value and cost effectiveness to public and private payers requires rigorous data analysis. The acquisition of HERON further strengthens our ability to offer our clients a full spectrum of services that aid in developing products with reimbursement and market access in mind. Over the past thirteen years, HERON has built one of the largest independent evidence-based consultancies, and has achieved a market leadership position. We are pleased to be able to expand the expertise of our commercialization offering and believe that HERON will help to enhance the portfolio of services that we provide through our PAREXEL Consulting and Medical Communications Services business.”
John Kerrigan, one of the founders of HERON and the new Corporate Vice President and Worldwide Head of HERON at PAREXEL stated, "HERON is excited to be joining PAREXEL to provide enhanced commercialization services. Combining with PAREXEL will provide us the ability to introduce HERON services earlier in the product development process, and to leverage PAREXEL’s broad global presence. As the healthcare environment evolves, we look forward to continued innovation in the use of evidence to support commercial decisions."
PAREXEL has provided updated financial guidance for the Company, including the impact of the acquisition of HERON, in its Third Quarter earnings press release dated April 30, 2013.