Our Washington, D.C. partner Ernie Stern was recently interviewed by San Fernando Valley Business Journal for an article titled “Biotech: Partnership Leads to Strategic Purchase.”
Ernie points to a deal being based on the specifics of the life science industry. Here are a few excerpts from the article:
Prior to HemaCare, Charles River acquired six companies since 2016, including CiToxLAB for $510 million, MPI Research for $800 million and KWS BioTest for an undisclosed amount, according to CrunchBase.
For Ernie Stern, an attorney and partner at the firm Culhane Meadows in Dallas who specializes in mergers and acquisitions, this deal is based on the specifics of the life science industry.
“That’s not uncommon. You’ve reached some sort of collaboration agreement and might support certain tests and trials,” said Stern. “That gives them the opportunity to say they like what they see, and the progress has been made and they understand the progress better, and the people better, so that they can assess the risk better. … It gives them the opportunity to either make an acquisition or exclusive license, something that gives them the benefit of the risk they have undertaken.”
In Charles River’s case, the partnership helped the company see how HemaCare could fill gaps in its ability to support clients. This is especially true in the cell therapy space, Dunn told the Business Journal.
The complete article can be found HERE.
