Some interesting observations, Steve. Somehow, I think MDS would move pretty quickly if faced with a bid form a third party. However, MDS won't pay exorbitant money for CRLS, that's probably why they didn't acquire it outright when they had the chance (asking price was likely too high).
I doubt AXPH would take a run at CRLS - CRLS is anything but a cash cow these days, and CRLS does not have true global clinical trials capabilities. It would be cheaper for AXPH to use QTRN, CVD etc for their development needs. Having said that, anything is possible, so I won't eat my hat if I'm proved wrong...!!
I can see OCR taking a look, to complement the Phase II-IV services of IBAH. That would be a neat fit as CRLS, via its Bioclin acquisition, has strong Phase I capabilities. I don't think GZTC will want to make a major move like this, although there is some logic.
Just as likely is a bid from a VC group. At a market cap of $23m, CRLS is small change. A VC group could fold other, privately owned CROs into CRLS, saving them the costs and risks of an IPO.
The longer CRLS sits in the basement, the more likely it's going to get gobbled up. The recent loss of a $25m development programme will have left them with a beefed up infrastructure with low volume passing through it. That's going to lead to greater losses next quarter and thereafter unless they either let people go or seriously grow their backlog.
Mr Bond is watching with interest. |
