Resonance Health (ASX: RHT) has entered into an agreement with Sun Pharmaceutical Industries, securing a $13.8 million contract to act as the local Australian sponsor for Sun Pharma's global clinical trial of a novel drug compound. The deal, expected to generate revenue over the next 24 months, underscores Resonance Health's expanding role in the clinical trial ecosystem.
Scope of the Agreement
Under the agreement, Resonance Health will provide comprehensive clinical research organization (CRO) services, including trial site management and advanced imaging analysis. The initial payment of $2.1 million is due within 30 days of execution. Resonance Health will leverage its recently acquired TrialsWest business to conduct the clinical trial.
Andrew Harrison, CEO of Resonance Health, noted that the selected trial sites are among the largest vendors for clinical trials of this nature. He added, "This contract win highlights Resonance’s strategy of providing its technology and services to the burgeoning and highly technical global pharma and clinical trials markets."
TrialsWest Acquisition Benefits
The acquisition of TrialsWest, finalized in April for an upfront cash consideration of $4 million with a potential earnout of another $4 million, is already yielding strategic benefits. "The selected trial sites are among the largest vendors for clinical trials of this nature, so a significant portion of the revenues payable to trial sites will now stay within the Resonance group," Harrison stated.
Clinical Trial Operations
Patient recruitment for the clinical trial is slated to begin in early 2025, with both TrialsWest sites playing a crucial role. Resonance Health will provide imaging analysis services at various timepoints throughout the trial, in addition to managing clinical trial site services, including engagement with and payments to relevant institutions, sites, and vendors.
"The agreement is a direct result of the incredible work the team has done in executing the existing clinical trial with the customer and, more broadly, the company’s focus on winning more work in the global clinical trials ecosystem," Mr. Harrison said. "This illustrates our ability to win repeat work from customers and our capacity to scale the size of contract wins."
