Horizon lines up millions via deal with Top 3 pharma giant
Gene editing business Horizon Discovery has lined up a fresh source of lucrative income by signing a Master Services Agreement (MSA) with a top three global pharmaceutical company.
The deal extends support for the pharma giant’s drug discovery and development efforts to Horizon’s full suite of services delivered from its Cambridge UK headquarters.
The alliance is potentially worth multimillion dollars over the course of the agreement.
Adding to a pre-existing MSA for in vivo services, the terms of this contract now cover a range of Horizon’s in vitro service offerings, defining the pricing and terms that will govern future transactions and facilitating simplified entry into forthcoming agreements.
Services included under the MSA are: custom cell line engineering, target identification and validation screening (including the use of CRISPR gene editing technology), drug combination screening and cell-based assay services.
Horizon is establishing itself as a key provider to an increasing number of major pharmaceutical and biotech companies by delivering – in its own words – “reliable, high-quality, high-value services, and by strengthening key relationships within each organisation.”
That approach allowed Horizon to negotiate this agreement, building trust with the company and becoming a preferred provider over time.
The pharma player concerned – which is not being named – is now Horizon’s single largest customer, contributing over £1.5 million in revenue in 2016 (c£0.6 million FY15). The current project pipeline indicates there will be an expansion of revenue received in 2017.
Horizon CEO Dr Darrin Disley, said: “Today’s announcement demonstrates the success of Horizon’s strategy of deepening relationships with our top customers.
“By taking a broader and more integrated approach, we are able to identify areas where we can provide significant value and are able to offer unified solutions that involve a range of Horizon’s services.
“In 2016, our top 20 customers provided over £9.8m to the group and in 2017 we are looking to increase our revenue from this segment by at least 20 per cent, with this agreement serving as a template.”
Johnson & Johnson, Novartis, Roche and Pfizer are thought to be the largest Big Pharma operators by revenue on the international scene.