Quintiles, Quest Diagnostics To Form JV For Global Clinical Trials Lab Services

(RTTNews) - Quintiles (Q) and Quest Diagnostics (DGX) Tuesday announced a definitive agreement to form a global clinical trials laboratory services business.

The new entity will combine the clinical trials laboratory operations of the two companies and will provide customers with the depth of capabilities and end-to-end clinical trial laboratory services required to succeed in the complex biopharmaceutical industry.

The new entity will offer a compelling value proposition to solidify its position as the second-largest central laboratory services company in the world.

The JV would have generated $575 million in revenues in 2014, and will offer a superior breadth of services and an industry-leading test menu to its customers across all segments of the biopharmaceutical industry.

Upon closing of the transaction, Quintiles will own 60 percent and Quest Diagnostics will own 40 percent of the new joint venture.

The deal is expected to close in the third quarter of 2015. Financial details were not disclosed.