CLL.L Share News (CLL)

(Sharecast News) - Healthcare-led advisory group Cello Health has announced the acquisition of Innovative Science Solutions (ISS), a US-based scientific consulting firm, for up to $10.5m.
ISS specialises in strategic counsel and regulatory support for the healthcare industry. Since its foundation in 2000, it has helped many clients successfully navigate FDA advisory committee meetings, Cello said. The business also supports healthcare related clients with data provision in mounting legal defence around patent and intellectual property issues.

Cello will pay an initial consideration of $6.4m in cash, which will be funded from its existing cash and debt facilities. There will also be a deferred consideration of up to $4.1m payable in four tranches, each dependent on financial performance over the periods from 1 August 2019 to 31 July 2024.

For the year to 31 December 2018, ISS had an unaudited revenue of $5.0m, net revenue of $4.5m, unadjusted pre-tax profit of $2.8m and adjusted operating profit of $1.8 m. It's expected that post completion, ISS's operating profits will be lower than historical levels, reflecting the investment in senior headcount required "as the business rapidly develops the scale of its professional base to support its growing client franchise".

Cello Health chief executive Julia Ralston said: "We are excited about the acquisition of ISS at this stage in our US evolution. ISS has built a strong reputation for provision of its scientific consulting services. Adding this technical offer will benefit our clients, particularly by tackling their biggest challenges in navigating critical scientific, commercial, and regulatory pathways to successful commercialisation."