Big Pharma isn't the only crowd swearing off megamergers lately. In his business of providing software to pharma's clinical trials, Medidata ($MDSO) CEO Tarek Sherif wants his company to avoid major buyouts in favor of small purchases and organic tech development, he told Outsourcing-Pharma.
This shouldn't be a surprise to the eClinical crowd. New York-based Medidata has publicly stated that it's been able to swoop in and gain customers from rival Oracle ($ORCL), which has been dealing with overlap and support matters in its portfolio of clinical trials software products from the $685 million buyout of competitor Phase Forward, the article says. (Apparently a $685 million deal is a megamerger in the eClinical game, unlike the tens of billions it takes to achieve that status in pharma.)
In major mergers, the key is to make the right match. Last year, Medidata bought Clinical Force for that company's clinical trial management system (CTMS) product, and recently touted the fact that the number of active studies operating on the CTMS from Clinical Force has grown 85% since the July 2011 acquisition. Meantime, the company has been pumping millions of dollars annually into development of its next set of software tools to streamline clinical trials. And analysts seem to eat up the strategy at Medidata.
"Our discussions indicate that Medidata is having increasing levels of success in securing multi-product and enterprise-level awards," said Raymond James analyst Sandy Draper, as quoted by Outsourcing-Pharma.
- check out the Outsourcing-Pharma article
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