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Saturday, February 24, 2024

Science 37, once valued at $1B, sells for $38 million

Science 37 Holdings, a drug trials services company based in Research Triangle Park, has agreed to be sold for $38 million to diagnostics company eMed, which is based in Miami.

That’s a far cry from the $1 billion valuation it had after going public in 2021 by merging with a special purpose acquisition company. That deal gave the company $235 million in cash.

In an email to employees Monday morning, Science 37 CEO David Coman wrote, “We believe that achieving our goals can be better accomplished as a privately-held company and with eMed as a partner. In short, we anticipate this transaction will solidify our ability to continue to serve our customers, increase access to clinical trials for patients and provide opportunities for employees.”

EMed is paying $5.75 for each share of Science 37 stock, a 21.3% premium over Science 37’s closing share price on Jan. 26, the last full trading day prior to the announcement.

Shareholders holding approximately 44% of the outstanding stock in Science 37 have already agreed to the deal.

“We expect Science 37 will continue to operate as a stand-alone business within the eMed portfolio,” said Cman in his email. “There is no change to our mission, as we continue to provide access to new patients and enroll trials faster.”

The transaction is expected to be completed in the first quarter of 2024. Science 37’s stock price rose 16.3%, or 80 cents, to $5.68 in mid Monday trading. In November 2021, the stock was above $275 a share.

The company also provided financial guidance for 2023, saying that its revenue would be between $58 million and $59 million, in line with consensus analyst estimates of $58.4 million.

It also says that its 2023 EBITDA earnings would be better than the previous guidance of a loss of $32.5 million. In the third quarter, the company reported a net loss of $13.9 million on revenue of $14.9 million.

EMed provides an array of telehealth kits for urgent care needs, as well as for issues such as weight management.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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