Icon secures data management deal with Lilly

Eli Lilly has continued its march down the outsourcing route and signed a wide-ranging deal with Ireland’s Icon plc in the area of data management.

The US drugmaker, which is in the midst or a major restructuring of its business processes that have seen several deals struck with contract services companies, is asking Icon to manage all its clinical data outside the US and Japan.

Lilly, like other big drugmakers, has been outsourcing more of their research and development work in order to cut costs. In October, Lilly signed a 10-year, $1.6bn research agreement with drug development services company Covance.

Icon said the agreement, which spans more than three dozen countries will help to transform Lilly’s research and development organisation as they seek to drive productivity, gain speed to market and lower drug development costs.

Peter Gray, Icon’s CEO, described the deal as “an innovative partnership approach to the outsourcing relationship.

The decision to move this important business function to Icon is based on our proven ability to meet project deadlines whilst driving process efficiencies,” he added.

The Lilly deals comes on the back of a run of strong performances by the Irish CRO, which saw exceeded 2007 revenues and operating profit in the first nine months of this year alone. Icon made $73m on $645m in sales in the first three quarters of the year and has a backlog approaching $1.75bn.

Expands in India

Just ahead of its Lilly announcement, Icon also announced the opening of a full-service central laboratory in Bangalore, India. The 15,000 sq ft facility expands the firm’s' existing network of central laboratories located in Farmingdale, New York; Dublin, Ireland; and Singapore.

The new Indian laboratory is in the process of receiving CAP (College of American Pathologists) and NABL (National Accreditation Board for Laboratory Testing) accreditation.

Icon said it has also appointed Dr. Anuradha Rajput to the position of general manager of Icon Central Laboratories India. Rajput joins ICON Central Laboratories from Clinigene International.

Prevalere purchase

The other big news for Icon this week was its purchase of New York-based Prevalere Life Sciences for up to $43.2m, part of an expansion in the US CRO market.

Prevalere is one of the leading providers of bioanalytical and immunoassay laboratory services to the biotechnology and pharmaceutical industries and operates from a 49,000 sq ft facility in Whitesboro.

An audio interview with Icon detailing the rationale behind the acquisition will appear on OutsourcingPharma.com next week.