Covance to Acquire Seattle-Based Gene Expression Laboratory from Merck & Co
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Covance has announced it has entered into a definitive agreement with Merck & Co., Inc. relating to the supply of genomic analysis services.
Under the terms of the agreement Merck has committed to a five-year $145 million contract to purchase genomic analysis services from Covance. In addition Covance will acquire Merck's Seattle-based Gene Expression Laboratory that performs genomics services such as genotyping, gene sequencing and gene expression profiling.
"The acquisition of this laboratory brings world-class talent and technologies to Covance and further expands our capabilities in genomics testing and personalized medicine," said Joe Herring, Chairman and Chief Executive Officer of Covance Inc.
"We recognized the need to expand our footprint in the important and growing genomics testing market and this transaction provided both a superior and quicker entry point than the build or buy options we considered. The overall size of the genomics market is estimated at several hundred million dollars per year, including services for discovery/preclinical and clinical trials support," Herring said.
"We believe this acquisition establishes Covance as the largest genomics service provider in the world," said Deborah Tanner, Corporate Senior Vice President, President, Central Laboratory Services at Covance. "This agreement will broaden our participation in projects and partnerships with clients in the drug discovery process."
Covance expects to offer employment to the majority of current employees and is scheduled to assume occupancy of the site and operation of the Gene Expression Laboratory on August 17, 2009.
Under the terms of the agreement Merck has committed to a five-year $145 million contract to purchase genomic analysis services from Covance. In addition Covance will acquire Merck's Seattle-based Gene Expression Laboratory that performs genomics services such as genotyping, gene sequencing and gene expression profiling.
"The acquisition of this laboratory brings world-class talent and technologies to Covance and further expands our capabilities in genomics testing and personalized medicine," said Joe Herring, Chairman and Chief Executive Officer of Covance Inc.
"We recognized the need to expand our footprint in the important and growing genomics testing market and this transaction provided both a superior and quicker entry point than the build or buy options we considered. The overall size of the genomics market is estimated at several hundred million dollars per year, including services for discovery/preclinical and clinical trials support," Herring said.
"We believe this acquisition establishes Covance as the largest genomics service provider in the world," said Deborah Tanner, Corporate Senior Vice President, President, Central Laboratory Services at Covance. "This agreement will broaden our participation in projects and partnerships with clients in the drug discovery process."
Covance expects to offer employment to the majority of current employees and is scheduled to assume occupancy of the site and operation of the Gene Expression Laboratory on August 17, 2009.
