PharmaSphere: Global Dealmaking and Operations Strategies in the CRO Market

Pages: 127 Published: September 01, 2013 Report Code: GDHC007PSR

The PharmaSphere: Global Dealmaking & Operations Strategies in the CRO Market Report covers the dealmaking activity and infrastructure investments of over 50 public and privately held contract research organizations. This report discusses and analyzes over 60 strategic deals struck by large and niche/specialty service providers. GlobalData’s Industry Dynamics team evaluates the strategic drivers, fit, acquisition costs and revenue potential of these deals to illustrate the strategies different contractors are using to gain market share.

Scope

This report provides analysis of the key drivers and trends shaping the global CRO market; including biologics manufacturing, emerging markets, and eClinical technologies

This report offers a deep dive into the synergies behind partnering and acquisition activity

The report contains a discussion of regional segment strategies

Firm utilization, resources management, and efficiency metrics

Leadership/Management Changes

Reasons to Buy

N/A

Key Players

Absorption Systems, Accelovance, Accovion, AMRI, Aptuit, Asklep, Axxam SpA, BioRasi, Calvert Labs, Catalent, Celerion, Charles River, Chiltern, Clinipace, ClinStar, ClinTec, CMIC, Covance, CromSource, DKSH, EPS Corp, Estern Medical, Frontage, GVK Biosciences, Harlan Labs, Icon, INC Research, Max Neeman International, MPI Research, Novella Clinical, Novotech, Ockham, Octagon Research Solutions, Paragon Biomedical, Parexel, Patheon, Pharmaron, Pharm-Olam, PPD, PRA International, PSI, QPS
,Quintiles, ReSearch Pharmaceutical Services, Sponsors Clinical Research Group, Synexus, Syngene, SynteractHCR, and TFS International, Theorem Clinical Research, TKL Research and WuXi.

Table of Contents

1Table of Contents

1.1List of Tables

1.2List of Figures

2Introduction

2.1Report Scope

2.1.1GlobalData Selection Criteria

2.1.2Companies Covered

2.2Upcoming Reports

2.3Recently Published Reports

3CRO Market Dynamics

3.1Outsourcing Service Delivery Models

3.1.1Fully Integrated Service Model

3.1.2Functional Service Model

3.1.3The Bottom Line: Use a Hybrid Approach

3.2Quintiles Goes Public

3.2.1Quintiles IPO Raises $947M, Pricing an Increased Number of Shares at Top Range

3.3Weak Demand for Preclinical Services Causes CROs to Economize

3.4CROs are Transitioning into Becoming Experts in Biologics Manufacturing

3.4.1WuXi Will Become a Leader in Biologics Manufacturing through its Multi-pronged Strategy

3.4.2Catalent Opens New Manufacturing Center for Biologic Drug Development

3.4.3ShangPharma Inks Two mAb Partnerships

3.5Emerging Locations in Asia Will See the Greatest Investment and Growth

3.5.1Location, Location – Footprint Growth Has Become More Important than Cost Reduction

3.5.2Will Concerns about Patient Safety Bring Down the Indian Clinical Trial Market?

3.6eClinical Technologies Will be Key Drivers to Accelerating Time-to-Market

3.6.1Icon and Cerner Team Up to Streamline Late-Phase Studies

3.6.2Parexel Introduces MyTrials Platform

3.6.3INC Research Expands Partnership with Medidata Solutions

3.6.4Quintiles Unveils its Next-Generation Infosario Analytics Platform

3.6.5Covance Launches Xcellerate to Increase Clinical Trial Optimization

4Collaboration and Acquisition Strategies

4.1Overview

4.2M&A Analysis

4.2.1KKR Makes a Splash into CRO Biz with PRA Buy

4.2.2Quintiles Invests in Personalized Medicine

4.2.3Patheon Completes Purchase of Banner Pharmacaps

4.2.4Clinipace Doubles in Size with Paragon Buyout

4.2.5Accenture Complements its R&D Service Offerings with Acquisition of Octagon

4.2.6Catalent Pharma Buys Aptuit’s CTS Business

4.2.7Charles River and Covance Expand Microbial Identification Capabilities

4.3Strategic Partnerships with Large Pharmaceutical Clients

4.3.1Quintiles and Merck Serono Announce Innovative Clinical Development Partnership

4.3.2Charles River and AstraZeneca Align to Accelerate Drug Development

4.3.3Covance Deals

4.3.4Pfizer Improves Clinical Trial Flexibility with Icon and Parexel Partnership

4.3.5Aptuit and GSK Extend Strategic Alliance

4.3.6INC Research Enters into FSP Collaboration with Astellas

4.3.7PRA Announces Strategic Biosimilar Development Agreement with Amgen

4.3.8Parexel and Catalent Combine Core Competencies to Streamline Supply Chain

5Regional Analysis

5.1Overview

5.2North America Landscape Assessment

5.2.1Pharma’s Large Revenue Base in North America Continues to Drive CRO Sector Growth

5.3Strategic Partnerships

5.3.1Covance Collaborates with M2Gen and BioPontis Alliance

5.3.2AMRI Signs Agreement to License its Novel Tubulin Inhibitor Program to Chai Therapeutics

5.3.3Ockham Completes Acquisition of Nexus Oncology

5.3.4Synteract and HCR Combine to Form Multinational CRO

5.3.5Accelovance Buys Radiant’s CRO Division

5.3.6Theorem Forms Relationship with IVD Consultancy Emergo Group

5.4Operations and Global Service Delivery

5.4.1AMRI Realigns its Drug Discovery Services

5.4.2PPD and Icon Grow Bioassay Capabilities in the US

5.5Revenue and Growth Leaders

5.5.1Revenue

5.5.2Revenue Growth YtY

5.6Europe Landscape Assessment

5.6.1European CRO Market Witnessed a Significant Pullback in Growth

5.7Strategic Partnerships

5.7.1TFS International Acquires Italian CRO Dimensione Ricerca

5.7.2Quintiles Signs Deal to Bring Almirall’s LAMA Therapy to the UK

5.7.3Icon Selected by European Pharma Companies as a Global Strategic Partner

5.7.4CromSource Adds Early Phase Research Unit in Partnership with CRC

5.7.5Covance Inks Tech Transfer Deal with France’s Inserm Transfert SA

5.8Operations and Global Service Delivery

5.8.1Patheon Invests in its SoluPath Program in the UK

5.8.2Celerion Expands Belfast Facility with Containment Room for Biologics Studies

5.8.3Harlan Labs Announces Major Investment in Switzerland

5.9Revenue and Growth Leaders

5.9.1Revenue

5.9.2Revenue Growth YtY

5.10Asia-Pacific Landscape Assessment

5.10.1APAC Market Remains Hot for Clinical Outsourcing

5.11Strategic Partnerships

5.11.1Japanese CROs Grow their Domestic Footprints

5.11.2AMRI Drives SmartSourcing Strategy in Japan

5.11.3Covance-BML Boost Clinical Trial Lab in Japan

5.11.4EPS Corporation Separates Business Units to Streamline Efficiency

5.11.5Frontage Hired by Local Chinese Clients to Develop Drugs Overseas

5.11.6DKSH Expands Services in South East Asia

5.12Operations and Global Service Delivery

5.12.1GVK BIO Selects New Distributor in Taiwan

5.12.2Max Neeman International Grows Regional Footprint

5.12.3ClinTec International

5.13Revenue and Growth Leaders

5.13.1Revenue

5.13.2Revenue Growth YtY

5.14Emerging Markets Landscape Assessment

5.14.1BRICs and Other Emerging Regions Still Represent Huge Untapped Markets for R&D

5.15Strategic Partnerships

5.15.1Central and Latin America

5.15.2Emerging EMEA

5.15.3China

5.15.4India

5.15.5Rest of Asia

5.16Operations and Global Service Delivery

5.16.1Expand Strategic Investment in Emerging Markets to Support Business Growth

5.17Revenue and Growth Leaders

5.17.1Revenue

5.17.2Revenue Growth YtY

5.17.3Global Laboratory Accreditations and Certifications

6Firm Utilization

6.1Excerpt from CRO Benchmark Report: Heat Mapping

6.1.1Covance Was the Firm Utilization Leader in 2012

6.2Firm Utilization Metrics

6.2.1Headcount Growth YtY

6.2.2Revenue per Employee

6.2.3Clinical Services Revenue per Clinical Services Employee

6.2.4G&A Expense per G&A Employee

6.2.5S&M Expense per S&M Employee

6.3Human Capital Leadership Changes

6.3.1Source Therapeutic and Regional Expertise to Boost Clinical Operations

6.4Capital Management: Heat Map

6.4.1EPS Was the Capital Management Leader in 2012 due to its Higher Liquidity

6.5Capital Structure Metrics

6.5.1Debt/Equity Ratio

6.5.2Current Ratio

6.5.3Cash Ratio

6.6Share Offerings and Debt Restructurings

6.6.1Proceeds from Share Repurchases Used to Pay-down Debt and Finance Acquisitions

7Future Outlook

7.1CRO Market

7.2Vendor Positioning

8Appendix

8.1Research Methodology

8.1.1Coverage

8.1.2Secondary Research

8.2About the Author

8.2.1Adam Dion, Industry Analyst

8.3Director, Healthcare Industry Dynamics

8.4Global Head of Healthcare

8.5About the Industry Dynamics Team

8.6About GlobalData

8.7Disclosure Information

8.8Contac Us

8.9Disclaimer

List of Tables

Table 1: Other Strategic Partnerships, North America, 2012–2013

Table 2: Infrastructure Investments, North America, 2012–2013

Table 3: Other Strategic Partnerships, Europe, 2012–2013

Table 4: Infrastructure Investments, Europe, 2012–2013

Table 5: Other Strategic Partnerships, APAC, 2012–2013

Table 6: Other Strategic Partnerships, Emerging Markets, 2012–2013

Table 7: Infrastructure Investments, Emerging Markets, 2012–2013

Table 8: Recent Laboratory Accreditations and Certifications, Worldwide, 2012–2013

Table 9: Firm Utilization Composite Scores, 2012

Table 10: Key Leadership Changes, 2012–2013

Table 11: Capital Management Composite Scores, 2012

Table 12: Share Offerings and Debt Restructurings , 2012–2013

List of Figures

Figure 1: Contract Research Organization Deals and Deal Values ($m), 2008–2012

Figure 2: Number of M&A Deals and Deal Values ($m), 2008–2012

Figure 3: Number of Licensing Deals and Deal Values ($m), 2008–2012

Figure 4: Combined Peer Group Revenue ($m) by Region, 2010–2012

Figure 5: North America Landscape Assessment, 2012

Figure 6: North America Revenue ($m) by Company, 2012

Figure 7: North America Revenue Growth by Company, 2012

Figure 8: Europe Landscape Assessment, 2012

Figure 9: Europe Revenue ($m) by Company, 2012

Figure 10: Europe Revenue Growth by Company, 2012

Figure 11: APAC Landscape Assessment, 2012

Figure 12: APAC Revenue ($m) by Company, 2012

Figure 13: APAC Revenue Growth by Company, 2012

Figure 14: Emerging Markets Landscape Assessment, 2012

Figure 15: Emerging Markets Revenue ($m) by Company, 2012

Figure 16: Emerging Markets Revenue Growth by Company, 2012

Figure 17: Headcount Growth by Company, 2012

Figure 18: Revenue per Employee (In $ Thousands) by Company, 2012

Figure 19: Clinical Srvcs Revenue per Clinical Srvcs Employee (In $ Thousands) by Company, 2012

Figure 20: G&A Expense per G&A Employee (In $ Thousands) by Company, 2012

Figure 21: S&M Expense per S&M Employee (In $ Thousands) by Company, 2012

Figure 22: Debt-to-Equity Ratio by Company, 4Q12

Figure 23: Current Ratio by Company, 4Q12

Figure 24: Cash Ratio by Company, 4Q12

Figure 25: CRO Benchmark Peer Group, Global Market Forecast, ($bn), 2012–2017

Figure 26: CRO Benchmark Vendor Position and 2013 Growth Projections

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