Quintiles paid $146.5 million in cash for Novella Clinical of Morrisville – and could end up paying more.
Durham-based Quintiles didn’t disclose a purchase price when it announced in August that it was acquiring Novella to bolster its services for smaller drug companies focused on developing cancer treatments. But last week Quintiles reported the price in a filing with the Securities and Exchange Commission.
In addition to the up-front cash payment, Quintiles reported that it could also pay up to $21 million to shareholders of privately owned Novella if the business achieves unspecified revenue and new business targets over the next three years. Novella is operating under its own name as a unit of Quintiles.
Quintiles, the world’s largest pharmaceutical services company, completed its acquisition of Novella, which had about 300 Triangle employees and 800 overall, on Sept. 16.
Quintiles’ largest business is helping pharmaceutical and biotechnology companies test experimental drugs.
Quintiles CEO Tom Pike said during a conference call with analysts last week that the company had been searching “for an organization that could help us in both the oncology and medical device area, and Novella really fits that bill. ... And so they are just about a perfect fit.”
Pike also said that Quintiles is “really pleased with the executive team that we’re bringing in” from Novella.