Acquisition will tip the balance sheet says Fulcrum
AIM-listed drug development and services company, Fulcrum Pharma has acquired a company specialising in clinical trials for drugs for a maximum of £1.6m.AIM-listed drug development and services company, Fulcrum Pharma has acquired a company specialising in clinical trials for drugs for a maximum of £1.6m.
The acquisition of West Sussex based Quadramed is based on net assets of £300k in a combination of shares, loan notes and cash. The deal’s terms include an initial payment of £1.1 million and a performance based earn-out.
Fulcrum Pharma, which is based in Hemel Hempstead, said the deal significantly strengthens its existing regulatory services capability, both by expanding capacity and by broadening the range of services into marketing authorisation submissions. Fulcrum said it would also broaden its customer base.
The Hertfordshire business said it would be looking to make further acquisitions in the space "where suitable opportunities arise."
Quadramed, which was founded in 1991, reported sales of £1.36m and pre-tax profits of £466k. Its clients include biotechnology and pharmaceutical companies in both Europe and the US.
Jon Court, chief executive of Fulcrum Pharma, said: "This earnings enhancing acquisition delivers a key strategic objective and strengthens a part of our business that we have identified as offering growth potential."