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HEALWELL AI to Acquire BioPharma, One of Canada's Largest CROs, to Expand and AI-Enable Clinical Research Offerings
HEALWELL has entered into an agreement to acquire BioPharma Services Inc., one of the largest ful...
About this update from Healwell Ai Inc. Class A
[{"type":"text","content":"HEALWELL AI to Acquire BioPharma, One of Canada's Largest CROs, to Expand and AI-Enable Clinical Research OfferingsHEALWELL has entered into an agreement to acquire BioPharma Services Inc., one of the largest full-service Contract Research Organizations (\"CRO\") headquartered in Canada. BioPharma is focused on bioequivalence and early-stage clinical trials, with over 2,200 clinical trials completed to date with approximately 250 pharma clients since inception.BioPharma is expected to generate between $35 to $40 Million of revenue in 2024 with approximately 5% EBITDA1 operating margins based on YTD performance and has generated approximately $31 million of revenue in the trailing 12-month period. The transaction is expected to be financially and strategically accretive as HEALWELL intends to build on its existing smaller scale CRO capabilities and leverage its artificial intelligence (\"AI) capabilities and expertise in finding patients to expand and accelerate BioPharma's clinical research offerings. BioPharma has over 250 team members.HEALWELL will pay $11.9 million in cash and shares in addition to a 3-year performance earn-out that may result in an additional payment of up to $2.5 million. Once BioPharma and the previously announced VeroSource acquisitions are closed, HEALWELL's annualized revenue run-rate is expected to be greater than $65 million per year. Toronto, Ontario--(Newsfile Corp. - June 13, 2024) - HEALWELL AI Inc. (TSX: AIDX) (OTCQX: HWAIF) (\"HEALWELL\" or the \"Company\"), a healthcare technology company focused on AI and data science for preventative care, is pleased to announce that it has entered into an agreement to acquire BioPharma Services Inc. (\"BioPharma\"), a leading full service Contract Research Organization (\"CRO\") specializing in early clinical trials, for consideration of $11.9 million, subject to standard adjustments, in addition to a performance earnout of up to $2.5 million (the \"Transaction\"), from Think Research Corporation (\"Think Research\"). Based out of Toronto, Ontario, BioPharma has an impressive record of successfully implementing bioequivalence and early-stage clinical trials, with over 2,200 clinical trials completed with approximately 250 pharmaceutical companies since inception. BioPharma specializes in the conduct of Phase 1/2a and Bioequivalence clinical trials ...