eMed to buy Science 37 for $38 million
Telehealth and “in-home diagnostics” firm eMed will pay $38 million for decentralized clinical trials contractor, Science 37.
The deal – which was announced late last week – will add Science 37’s DCT capabilities to eMed’s testing network and diagnostics technologies. The acquisition will also see Science 37 delist from the Nasdaq exchange and become a private company when it completes later this quarter.
Science 37 CEO, David Coman, said the acquisition followed a review and that “eMed provides the greatest value to our stockholders, customers, patients, and employees.
“Stockholders will receive a premium, trial sponsors will gain greater access to patients, faster enrolment, and confidence in the company’s capital position, and our employees will be able to continue to pursue the existing mission of the company,” he added.
Financial update
News of the deal was accompanied by a business update from Science 37 in which it said that revenue for 2023 will within the most recently issued guidance of $58 to $59 million, down from $70.1 million in 2022.
In the update Science 37 also revealed that, net of cancellations and negative scope changes, bookings were ($15.7) million and $18.7 million for the quarter ended and full year.
The firm also said “$32.2 million of fourth quarter realization adjustments were the result of three large studies that were cancelled due to efficacy or customer portfolio prioritization.”
Cancellations aside, Science 37 said “At December 31, 2023, total backlog was $132.2 million, of which approximately $40.1 million was expected to be converted to revenue in 2024.
“Based on historical bookings and backlog conversion performance, the targeted range of revenues for the full year ending December 31, 2024 is approximately $50 to $60 million.”
For eMed, the acquisition follows just months after it bought Babylon Healthcare Services Limited and certain assets belonging to Babylon Group Holdings Limited and Babylon Partners Limited.
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