LabCorp, Envigo deal will see both companies focus and expand respective expertise

By Melissa Fassbender

- Last updated on GMT

(Image: Getty/Dmitrii_Guzhanin)
(Image: Getty/Dmitrii_Guzhanin)

Related tags LabCorp Covance Envigo

LabCorp’s Covance Drug Development segment is set to acquire Envigo’s nonclinical research services business for $485m – while Envigo will purchase Covance’s research products business.

Following the transaction, Envigo will have more than 1,200 employees globally. In turn, the combined Covance nonclinical research business will see its global employee base increase by nearly one-third, to approximately 4,200.

Sue Maynard, vice president of corporate communications, LabCorp, told us that adding Envigo’s nonclinical research services business expands the global reach and capabilities of the company’s nonclinical drug development business: “It infuses the company with additional scientific and technical expertise, and enhances our nonclinical capabilities and capacity, helping us to better meet the growing needs of our clients,”​ she added.

In parallel, Maynard said divesting Covance Research Products “simplifies and focuses”​ the Covance Drug Development nonclinical research business model.

For Envigo, the combination of its research models with Covance’s – specifically its large animal models – “will create a company with a singular focus on serving the research demands of the scientific community,”​ Paul Surdez, Envigo vice president of corporate affairs, told us.

Surdez said the ability to supply large animal models complements Envigo’s existing capabilities in providing rodent models and related products and services, including diets and bedding.

“Customers will benefit from a more coordinated supply chain, our enhanced focus and ability to invest in new services and products, and the capability to more easily source the best models for research needs,”​ he said.

“Envigo will become a one-stop-shop, providing a full range of research models, diets, and bedding for critical research projects with the highest standards of care for animal welfare.”

As part of the agreement, the two companies also will enter into a multi-year renewable supply agreement.

Covance and Envigo will continue to operate as two separate companies until the transaction closes, at which time a joint integration team will work to finalize the details of the business structure.

Related topics Preclinical Research

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