Cetero inks deal as interest in Phase I partnerships grows

06-Jun-2011 - Last updated on 07-Jun-2011 at 10:58 GMT

Cetero has inked an early stage preferred provider agreement and is eyeing other deals as sponsors look to extend the partnership model into Phase I.

Entering into strategic relationships with a limited number of contract research organisations (CRO) has allowed sponsors to consolidate their vendor networks. Most of these deals focus on Phase II to IV clinical trials but the model is now extending into early phase and Cetero Research hopes to benefit.

“We've been selected by a top pharma in a preferred provider deal”, Troy McCall, CEO of Cetero, told Outsourcing-Pharma. Cetero is in active discussions about strategic partnerships with other sponsors and is monitoring opportunities as companies reach the points in their cycles when early phase deals are inked.

With 1,500 early phase beds in North America Cetero is well placed to enter into these deals. The early phase unit at Icon has 250 beds, which Peter Gray, CEO of the Irish CRO, said is sufficient to compete for strategic partnerships.

Parexel, which has 580 beds ahead of upcoming cuts, has also spoken of competing for early phase strategic deals, but with a large network and considerable experience Cetero is confident of its position.

“We're quite comfortable with the capacity we've in place”, said McCall. A number of large CROs, most recently Parexel, have made early phase cuts and spoken of over-capacity but McCall claims Cetero has fared better.

McCall attributed the resiliance of early phase at Cetero to the CRO's focus on that stage of development. Cetero is also less linked to the fate of innovator biopharm because of its strong portofolio of generic clients.

Private equity ownership

Cetero was formed in 2006 when private equity backers began acquiring and consolidating early phase CROs. Since then private equity ownership of CROs has increased as financial players look to profit from the sector.

The owners of Cetero are “long-term players”, said McCall, and will back the CRO as it works to cement itself in a leading position in the early phase sector.