IDT finalises trials facility purchase

Melbourne-based contract research and drug manufacturing company Institute of Drug Technology Australia (ASX: IDT) has finalised its purchase of a human clinical trials facility in Adelaide.

The acquisition of CMAX from Mayne Pharma is predicted to add 20 per cent to IDT's annual revenues, contributing an extra $4 million.

While the sale was revealed by the parties in late May, the deal was finally made official today.

The sale of CMAX, a self-contained clinical unit for Phase I to IV studies, was settled for an undisclosed sum because of a confidentiality agreement with Mayne.

But IDT chairman and managing director Dr Graeme Blackman said the purchase would be paid for through the company's cash reserves, which were about $4.3 million in November last year.

Blackman said CMAX would complement IDT's existing development, scale-up and production of active drug ingredient businesses, by strengthening its local client base and building international exposure.

He said an added benefit was that IDT faced no conflict of interest in owning a clinical trials facility because it was not involved in the marketing and sale of end-stage medications.

Under the deal, IDT will take over the facility, its staff and its existing projects, which currently consist of several Phase I studies for local and international clients.

The CMAX facilities, located at the Royal Adelaide Hospital, include a dedicated hospital ward, specialised analytical chemistry facilities and more than 20 staff.

It was originally established in 1993 by FH Faulding to provide early clinical phase support for Faulding's generic drug development programs.