Hints and tips:
...Only $100m of synergies are expected (Covance has annual revenue of $2.5bn)....
...LabCorp’s current effective tax rate is 38 per cent versus Covance at 24 per cent....
...Covance, the US clinical research group, has slipped out of the 2,500 largest groups by market value, as has Securitas, the Sweden-based security group....
...Joe Herring, chief executive of Covance, said: “All pharma companies are looking to reduce their fixed costs and speed up development. This is another win-win situation.”...
...Eli Lilly has already gone further than many of its competitors in sharing the high costs of drug development with external partners, including through cost and profit sharing deals with Quintiles and Covance...
...Sanofi-Aventis chose a similar route with Covance last week....
...“If Charles River’s move is well-accepted by the market, other companies like Covance [the US contract researcher] might follow suit and acquire other Chinese companies,” said Mr Du....
...Eli Lilly has signed cost- and revenue-sharing deals with operators including Covance and Quintiles....
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