Japan’s I’rom buys into IDT Australia

Japanese clinical trial site management company I’rom Holdings has arranged to buy an 18.8% stake in contract manufacturing organisation IDT Australia for $2 million.

The companies have announced plans to collaborate to provide a broader range of clinical trial support services in Australia and the surrounding region.

As part of this collaboration, IDT will incorporate site management services from I’rom into its CMAX clinical trials business, which is based out of the Royal Adelaide Hospital.

The companies also intend to set up a network of medical institutions to help them more effectively serve the clinical research sector. This network will ideally help counter the current shortcomings in the Australian clinical trials market.

While site management organisations (SMOs) offering services into the field of clinical research is a relatively new practice, the market has grown quickly in pioneering countries. In Japan, the market is estimated to be worth the equivalent of $460 million. There is no real SMO market in Australia.

The stake purchase involves the allocation of 10 million IDT shares at $0.20 per share. Net of costs, the deal is worth $1.67 million.

IDT has announced plans to put the proceeds towards implementing the partners’ plans for the CMAX business.