CRO closure or buyout. Implications & circumvention Abhay - - PowerPoint PPT Presentation

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

CRO closure or buyout….

Implications & circumvention

Abhay Deshpande, Ph.D. Director – Global Innovation & Strategy – JRF Global NAICC 2019

2019-01-17 1

2019-01-17 2

CRO Industry Lifecycle

Decline Shake out/ Survival

Foundation

• Investments
• People
• GLP
• Brand Building

Challenges

• Talent

retention

• Cash flow ?

Revenues

• Management

changes

• Compliances
• Price war

Result

• Closure
• Merger /

Acquisition

• Price war

Result

• Maturation
• Expansion/

diversification

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

3

GLP and other Compliances Prudent timely investments Talent Management Sponsor Communications Scientific / Regulatory Expertise Program & Resources Management

2019-01-17

GLP / Compliance Issues Financial Challenges Leadership Talent loss Poor communication Poor science Poor business practices Lack of innovation/technology

What Can Make & Break a CRO?

Make

Break

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

• Loss of individual credibility
• Loss of scientific jobs
• All stakeholders are affected incl.

academia

People

• Uncertainty and anxiety
• Loss of business opportunity (Delays!),

& additional expenditure

Sponsors

• Encourages Monopolistic environment
• Loss of core competence
• Shortage of service providers

Industry

Consequences of CRO closure

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• Instability in Sponsor relationship
• Potential loss of Talent & critical mass

Organizational loss

• Loss of credibility
• Loss of brand image

Loss of value

• Problems in Cultural assimilation
• Relationship Disruption: SD and SM

People

• Cost to customers
• Project delays
• Chaos in the ongoing projects

Business loss Consequences of CRO acquisition

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CRO Business Models

2019-01-17

CRO Type Transaction Based

Invests in infrastructure Supermarket portfolio Moderate growth & Credibility

Niche Expertise Based

Specialized domain expertise

Premium services & prices, low Growth

Preferred Partner Based

Invest in Technology, & Talent Regulatory/discovery horizon expands with Partner needs Rapid growth

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

CRO as a target of M&A

Challenges

• Financial
• Operational
• Environmental
• Internal issues

Opportunity

• High Profits
• Growth potential
• Kill competition?
• Lab Facility

Complementarity

• Business
• Geography
• Service Portfolio
• Niche service

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Successful CRO

Talent Strong Leaders Key Accounts GXP Innovative Strategies

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Good Laboratory Practices Good Talent Management Practices Good Communication Practices Good Program Management Good Portfolio Management Good Business Practices

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Training & Development

GXP

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

Proactive interactions Providing solutions Regulatory support Timeline compliance Top quality Involve and Engage

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Customer Expectations

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

Encourage innovation Inculcate Honesty & Transparency New Developments Competence & Expertise Training & Development Publications

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Talent Management

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

Blue Ocean Strategies

Contemporary science Publications

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Blend Regular, Niche & Futuristic Services Offer Solutions

Strategy

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

Blue Ocean Strategies

Opportunity Hunt Build up unique differentiators Visibility/Brand building

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Network & Branding

Strategy

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

Futuristic vision & Strategy Investments: Zero tolerance for non-compliance Listens to inputs, Nimble, flexible

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Soft: Value innovation Capex: Latest equipment Implementation focus

Leadership

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

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Extended R&D Stronger management Financial stability Diversified experience Global exposure

24X7 responses Complimentary SBUs Advanced technology Talent and resource pool Regulatory expertise

Advantages of Global CROs

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

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• NAICC, for this opportunity to express my thoughts.
• JRF team: Thanks for your hard work & valuable

contributions to this presentation.

• Sridhar Iyer,
• Global Business Head JRF Global
• Mr. Samir Pandya
• Business Head JRF Global: Americas
• Chris Bianca
• Chief Scientist, JRF America

Acknowledgements

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global

2019-01-17 17

Customer Employee

Thank you

CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global