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Cello Health PLC

Cello Health expands further into US with US$10.5mln acquisition of ISS

ISS helps healthcare and pharma companies meeting with US regulators to discuss the next steps for their new drug or medical device

Cello Health PLC -
Cello said the acquisition reflects its desire to move further into the US market

Healthcare-led advisory group Cello Health PLC (LON:CLL) has bought US scientific consulting firm Innovative Science Solutions in a deal worth up to US$10.5mln.

Cello will pay US$6.4mln upfront, plus up to a further US$4.1mln in milestone payments.

New Jersey-based ISS, which employs ten staff, specialises in strategic counsel and regulatory support for the healthcare industry in the US.

READ: Cello trumpets first half performance

Founded in 2000, the company helps its clients navigate advisory committee meetings with the US Food and Drug Administration.

Last year, ISS generated revenue of US$5.0mln and an adjusted operating profit of US$1.8mln.

As of 31 December 2018, the company had unaudited gross assets of about US$1.7m.

Cello expects that post completion ISS's operating profits will likely 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.

“We are excited about the acquisition of ISS at this stage in our US evolution,” said Cello Health US chief executive Julia Ralston.

“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.”

Quick facts: Cello Health PLC

Price: £1.27

Market: AIM
Market Cap: £134.2 m
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