CRO closure or buyout…. Implications & circumvention Abhay Deshpande, Ph.D. Director – Global Innovation & Strategy – JRF Global NAICC 2019 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �1
CRO Industry Lifecycle Challenges Result • Talent Foundation retention • Maturation • Investments • Cash flow ? • Expansion/ Shake out/ Result Revenues diversification Survival • People • Closure • Management Decline • GLP changes • Merger / • Brand Building Acquisition • Compliances • Price war • Price war 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �2
What Can Make & Break a CRO? GLP / Compliance Issues Poor science GLP and other Compliances Leadership Talent loss Scientific / Regulatory Expertise Poor communication CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global Make Break Talent Management Financial Challenges Sponsor Communications Lack of innovation/technology Prudent timely investments Poor business practices Program & Resources Management 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �3
Consequences of CRO closure • Loss of individual credibility People • Loss of scientific jobs • All stakeholders are affected incl. academia • Uncertainty and anxiety Sponsors • Loss of business opportunity (Delays!), & additional expenditure • Encourages Monopolistic environment Industry • Loss of core competence • Shortage of service providers 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �4
Consequences of CRO acquisition Organizational • Instability in Sponsor relationship loss • Potential loss of Talent & critical mass • Loss of credibility Loss of value • Loss of brand image • Problems in Cultural assimilation People • Relationship Disruption: SD and SM •Cost to customers Business loss •Project delays •Chaos in the ongoing projects 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �5
CRO Business Models CRO Type Preferred Niche Transaction Partner Expertise Based Based Based Invests in infrastructure Specialized domain Invest in Technology, & Talent expertise Supermarket portfolio Regulatory/discovery horizon expands with Partner needs Premium services & Moderate growth & prices, low Growth Credibility Rapid growth 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �6
CRO as a target of M&A Opportunity Complementarity C hallenges •High Profits •Business •Financial •Growth potential •Geography •Operational •Kill competition? •Service Portfolio •Environmental •Lab Facility •Niche service •Internal issues 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �7
Talent Successful CRO Strong GXP Leaders Innovative Strategies Key Accounts 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �8
Good Laboratory Practices Good Talent Management Practices Training & Development G X P Good Program Management Good Portfolio Management Good Communication Practices Good Business Practices 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �9
Proactive interactions Providing solutions Expectations Customer Timeline compliance Top quality Regulatory support Involve and Engage 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �10
Encourage innovation Inculcate Honesty & Transparency Management Talent Competence & Expertise Training & Development New Developments Publications 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �11
Blue Ocean Strategies Blend Regular, Niche Strategy & Futuristic Services Contemporary science Publications Offer Solutions 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �12
Blue Ocean Strategies Network & Branding Strategy Build up unique differentiators Opportunity Hunt Visibility/Brand building 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �13
Futuristic vision & Strategy Implementation focus Leadership Investments: Soft: Value innovation Capex: Latest equipment Zero tolerance for non-compliance Listens to inputs, Nimble, flexible 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �14
Advantages of Global CROs Extended 24X7 responses R&D Stronger Complimentary SBUs management Financial Advanced technology stability Diversified Talent and resource pool experience Global Regulatory expertise exposure 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �15
Acknowledgements • 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 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �16
Customer Employee Thank you 2019-01-17 CRO closure or buyout -Director – Global Innovation & Strategy – JRF Global �17
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