CRO inVentiv Health has become the latest “preferred provider” to be chosen by the U.S. giant Pfizer ($PFE) to help with its clinical operations to support the Big Pharma’s research.
The agreement runs for three years and also gives Pfizer the right to extend the term for up to an additional two. Financial terms of the agreement were not disclosed.
The deal comes as the Burlington, MA-based company revealed back in April that its parent company was seeking a $100 million IPO--although there is chatter that this could reach as high as $500 million.
InVentiv Health touts itself as playing a role in either the development or commercialization of 60% of all drugs approved by the FDA over the last 5 years, and will be boosted by this deal, which comes at a fortuitous time.
“Complex science and challenging marketplace dynamics are driving the need for new, accelerated approaches to clinical development,” said Michael McKelvey, president of the clinical division at inVentiv Health.
“This agreement is an indication that our leading full-service clinical offerings are value-enhancing and scalable. We designed this approach to deliver patient-centric outcomes in an increasingly competitive environment.”
InVentiv Health already has a long-standing deal with Pfizer, but as its preferred provider, the CRO has expanded its clinical operations presence with the company, which has a focus on oncology, pain, neuroscience and respiratory, as well as data and tech-driven efficiencies.
“Our comprehensive clinical services have proved to be an asset in our work with Pfizer,” added Gregory Skalicky, chief commercial officer of the inVentiv Health clinical division. “The expansion of our relationship under this new preferred provider status will allow us to continue to seamlessly orchestrate our full suite of clinical solutions. We’re committed to realizing improved efficiencies in support of Pfizer’s clinical development activities.”
Pfizer, which recently had to drop a potential $160 billion megamerger deal with Allergan ($AGN), was feared by some analysts that it would drop its long-term commitment to its CRO partners--but the spate of new and extended deals in the past three months shows that its commitment to the sector remains strong.
This builds on deals with Big Pharma has made with Parexel ($PRXL), PPD and Icon ($ICON), bringing its preferred partner list to four. Quintiles ($Q) had long been rumored to be the next of these partners, but this simply hasn’t come through. The CRO may be a little busy right now however, given its multi-billion-dollar merger with IMS Health.
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