Ergomed plc, a company focused on providing specialized services to the pharmaceutical industry, has acquired MS Clinical Services, LLC (MedSource), a specialized CRO based in Houston, TX, for an initial consideration of $16.2 million in cash at closing, up to $1.8 million in Ergomed shares, and up to a further $7.0 million depending on MedSource’s financial results FY21.

MedSource is a full-service CRO with a focus on complex diseases and study designs, specializing in oncology and rare disease. The two businesses have core expertise in complex disease areas. The combined business will enable a greater degree of specialist expertise in high growth sectors of the overall pharmaceutical services market. The acquisition will further expand Ergomed’s presence in the North American market, with additional offices in Houston, Raleigh and Boston, as well as Newcastle upon Tyne in the UK, with the more than 110 U.S.-based employees.

Dr. Miroslav Reljanović, Executive Chairman of Ergomed, said: “We are delighted to have delivered on our strategic goals in 2020 with the expansion of our US footprint in both the CRO and PV businesses. The addition of MedSource and its complementary expertise in oncology and rare disease will further establish Ergomed as a specialized services provider in the strategically important US market, building on the successful acquisition and integration of Ashfield Pharmacovigilance (now PrimeVigilance USA) earlier this year. We look forward to developing the potential of this new business to offer truly global clinical research services to our international customer base.”

Eric Lund, founder of MedSource, who will continue in his current role as President of MedSource after the acquisition, said: “I am delighted to be joining the Ergomed Group and continuing my current role. We are confident that this is an important strategic step and natural fit for MedSource, as Ergomed is an exciting, fast-growing global company with a strong reputation in the CRO industry. Our own extensive experience in oncology and rare disease drug development and across product types, clinical trial phases and study designs will complement the services already offered to Ergomed’s international client base.”