Having been acquired by private investors last year INC committed to an aggressive growth strategy that will be accelerated through targeted acquisitions. Assets that add the scale and geographic reach needed to secure strategic alliances are among those being considered.
“There’s a minimum entry point for strategic alliances”, John Potthoff, chief operating officer at INC, told Outsourcing-Pharma. A large, global network of clinical trial sites is one requirement.
Some mid-tier contract research organisations (CRO) fall short of this requirement, said Potthoff, but global reach is one of INC’s strengths. Buying MDS Pharma Services’ late stage sites, which covered Asia, Africa and Latin America, in 2009 bolstered INC’s emerging market presence.
Now, INC is looking for further acquisitions to round-out its geographic reach and add scale. This will make it more competitive in the market for strategic alliances. INC has seen a big uptick in interest in more formal strategic alliances over the past year and is keen to secure this business.
Redefinition of mid-tier
Adding more capacity will further differentiate INC from some of its mid-tier peers. Under pressure from both large and specialist CROs, some expect mid-tier companies to expand to become fully global, like INC, or focus on a niche.
“There’s a redefinition of mid-sized”, said Potthoff, and CROs that have the scale for global, full service trials will split from those lacking this capacity. In this environment Potthoff expects the number of regionally-focused CROs to fall.
Therapeutic focus
INC is also considering making acquisitions to extend capabilities. Sponsors are outsourcing more complex trials and seeking CRO input earlier in development. Both these factors are prompting CROs to add expertise and capabilities more traditionally associated with sponsors.
In this new environment CROs are seeking to highlight their therapeutic expertise. “We’re strongly committed to the therapeutic model”, said Potthoff, and INC is still actively looking for in-house hires and external experts to add to its therapeutic strength.
“As trials get more complex we need to have access to the right sites and the right people”, said Potthoff.