Science 37, a decentralized clinical trial operating system developer, has shared it’s going public through a merger with special purpose acquisition company LifeSci Acquisition II Corp.
Upon completion of the deal, which is expected to close in the third quarter of 2021, the combined company will operate as Science 37 and will trade on the NASDAQ under the ticker symbol “SNCE.” Science 37 will have an initial enterprise value of approximately $1.05 billion.
The deal will provide the combined company with approximately $280 million in gross proceeds to support growth, including $200 million from private investment in public equity (PIPE) funding.
Additionally, the deal includes up to $125 million of additional performance-based equity consideration.
WHY THIS MATTERS
During the COVID-19 pandemic, conducting traditional in-person clinical trials was nearly impossible due to lockdowns and physical distancing requirements. As a result, decentralized trials – or studies conducted remotely – have emerged as a way to continue research during the pandemic.
In addition to the possibility to conduct research remotely, decentralized trials can improve participant recruitment, adherence and diversity, according to a report from Health Affairs.
“The clinical research industry is undergoing a dramatic transformation in which traditional development methods are being supplanted by technology fueled innovation,” David Coman, CEO of Science 37, said in a statement.
“Our clinical trial Operating System (OS) can enable significantly faster enrollment, retain patients at a meaningfully higher rate, and achieve higher enrollment among diverse patient populations. With this investment, we expect to advance our OS to further penetrate adjacent markets, and power the future of clinical research where we bridge between the traditional and decentralized approaches to enable a truly Agile Clinical Trial.”
Since its start in 2014, Science 37 has conducted more than 95 decentralized clinical trials with more than 366,000 participants.
THE LARGER TREND
Science 37 completed its first fully virtual trial in 2017 for AOBiome’s acne treatment.
Prior to that, the company racked up $31 million in its Series B round and $29 million in a Series C round of funding.
Also in the space is Florence, maker of software that supports clinical research with remote connectivity and electronic document management, and which recently raised $80 million in Series C funding.
In February, Current Health launched Community, its latest initiative to build diverse longitudinal datasets for decentralized clinical trials. Labcorp also recently updated its clinical trial process with a new technology platform to help streamline the clinical trial and drug development process.
ON THE RECORD
“Healthcare is increasingly transitioning to virtual and home-based environments, and we believe Science 37 is uniquely positioned as a pioneer in its approach to clinical trials,” Andrew McDonald, Ph.D., CEO of LifeSci Acquisition II Corp., said in a statement. “The company’s rapid growth is a testament to its truly disruptive technology and its immense market opportunity to change the way drugs are developed and go to market.”