Covance will acquire
Merck's Seattle-based Gene Expression Laboratory in exchange for a $145 million, five-year supply agreement with Merck for genomic analysis services. The lab 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. "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."
"We believe this acquisition establishes Covance as the largest genomics service provider in the world," said Deborah Tanner, corporate senior vice president, and 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.
"The Gene Expression Laboratory has established a strong reputation for consistent delivery of high quality experimental data in support of Merck's external collaborations and internal research projects," said Dr. Rupert Vessey, vice president, Merck Research Laboratories. "This agreement assures continued access to these services for our researchers while securing a future for the facility as an integral part of a world leading drug development service provider."
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