LAB International acquires Hungarian Toxicological Research Centre
LAB ’expanding core CRO services in European arena’
LAB International based in Laval, QC is buying the struggling Hungarian TRC at Veszrem for a price between US$1.75-$2.25 million (€1.55-1.85m; £1.07-1.38m), contingent on TRC’s 2003 revenues.
With 60,000 sq. ft. of facilities as a contract research organization (CRO) TRC generated US$2 million of revenues in 2002. The facility operated at only 15% capacity in its efforts to service the needs of its customer base, comprising a number of major International pharmaceutical, chemical and food companies for pre-clinical testing expertise.
Founded in 1974 as part of the Hungarian Chemical Research Institute, TRC relocated in 1989 to new, purpose-built facility constructed to International standards, funded by the World Bank, to provide an independent centre for toxicology research and testing expertise. The multi-disciplinary team of 85 includes scientists from university institutes of pharmacology, physiology and biochemistry, trained and qualified under Good Laboratory Practice (GLP) and ISO 9001 standards.
LAB’s CEO, Dr Halvor Jaeger, expects it will take about 12-months for TRC to be fully integrated into the Company and "when combined", he says, "it will strongly position the Company to serve our growing base of European clients while leveraging TRC’s lower cost structure to enhance our profitability."
In order to achieve this, LAB will be appointing two English-speaking, full-time, dedicated marketing professionals who will support the increased marketing efforts in Europe.
LAB’s strategy is to grow its CRO service operations both organically and by acquiring independently sustainable companies that either broaden its range of services or add to the scale of its existing services. LAB recently raised CAN $5 million (US$ 3.6m; £2.2m) for such acquisitions.
Keywords : LAB International Canada TRC Hungary Contract research organisation (CRO) Pre-clinical testing Food Chemicals Pharmaceuticals Good Laboratory Practice (GLP) M&A Acquisition
