Covance, Merck & Co. Finalize Strategic Agreement

Covance has closed its transaction with Merck to provide an array of genomics analysis services under a five-year $145m contract, and to acquire Merck’s Seattle-based Gene Expression Laboratory.

Effective August 17, 2009, Covance assumed control of the facility and the Seattle team has joined Covance.

Earlier on June 30, Covance announced its plan to acquire Merck’s laboratory, which offers genotyping, gene sequencing, and gene-expression profiling. With this transaction, Covance expects to provide employment to a majority of current Merck employees.

The Covance CEO, Joe Herring had then stated that the transaction will expand its footprint in the genomics testing market, and would provide both a superior and quicker entry point than the build or buy options considered.