Clinical research company Science 37 to go public in $1bn deal with LifeSci

Science 37, an American clinical research company, has agreed to merge with blank check company LifeSci Acquisition II in a deal that values the former at around $1.05 billion.

The deal also includes additional contingent consideration of up to $125 million to Science 37‘s existing shareholders, which will be based on meeting certain aftermarket stock price targets.

Upon closing of the deal, the combined firm will operate as Science 37 with a likely listing on the NASDAQ under the SNCE ticker symbol.

Established in 2014, Science 37 offers a platform to empower clinical research for customers while streamlining the experience and outcomes for patients and also researchers.

The company had developed the Decentralized Clinical Trial Operating System, which is designed for enabling universal participation for patients and providers, irrespective of location, in clinical trials.

Since its founding, Science 37 is said to have carried out over 95 decentralized clinical trials and has engaged 366,000 plus patients.

Andrew McDonald – CEO of LifeSci Acquisition II said: “Healthcare is increasingly transitioning to virtual and home-based environments, and we believe Science 37 is uniquely positioned as a pioneer in its approach to clinical trials.

“The company’s rapid growth is a testament to its truly disruptive technology and its immense market opportunity to change the way drugs are developed and go to market.”

Clinical research company Science 37 to merge with LifeSci Acquisition II. Photo courtesy of Science 37.

The deal is expected to provide the combined company with gross proceeds of nearly $280 million. This includes up to $80 million of cash held in the trust account of LifeSci Acquisition II and $200 million from a fully committed private placement in public (PIPE) equity funding from a group of institutional and healthcare investors.

Post-merger, legacy shareholders of Science 37 and its employees will have a stake of around 77% in the enlarged firm.

David Coman – CEO of Science 37 said: “The clinical research industry is undergoing a dramatic transformation in which traditional development methods are being supplanted by technology fueled innovation.

“Our clinical trial Operating System (OS) can enable significantly faster enrollment, retain patients at a meaningfully higher rate, and achieve higher enrollment among diverse patient populations.

“With this investment, we expect to advance our OS to further penetrate adjacent markets, and power the future of clinical research where we bridge between the traditional and decentralized approaches to enable a truly Agile Clinical Trial.”

The deal, which is subject to the approval of stockholders of both the merging firms, and customary conditions, is expected to be wrapped up in Q3 2021.