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Quintiles buys late-phase drug researcher Outcome Sciences

Quintiles announced its second strategic acquisition of the day, a deal to buy late phase pharmaceutical research firm Outcome Sciences. Durham, North Carolina-based Quintiles earlier today announced acquisitions of pharmaceutical marketing and commercialization firm VCG & Associates and its subsidiary VCG BIO. Outcome Sciences, based in Cambridge, Massachusetts, conducts late-stage and post-marketing research on drugs. […]

Quintiles announced its second strategic acquisition of the day, a deal to buy late phase pharmaceutical research firm Outcome Sciences.

Durham, North Carolina-based Quintiles earlier today announced acquisitions of pharmaceutical marketing and commercialization firm VCG & Associates and its subsidiary VCG BIO. Outcome Sciences, based in Cambridge, Massachusetts, conducts late-stage and post-marketing research on drugs. Data are collected through observational research, which includes patient registries that enable monitoring of defined patient populations.

The market for this late-stage research is growing. Phase 3b trials are typically done to expand a drug’s labeling beyond the uses of its original approval or to support additional marketing claims for a product. Phase 4 post-marketing studies are done to monitor drug safety after drugs reach the market. Jefferies and Co. forecasts that the market for phase 3b and phase 4 work will reach more than $4 billion by 2015.

“We estimate that observational research accounts for about 30 percent of that market, and Outcome is the notable leader in it,” Quintiles COO John Ratliff said in a prepared statement.

Outcome was founded in 1998 spun out of a laboratory affiliated with Harvard University. Besides its Cambridge headquarters, the company has U.S. offices in Chicago and  Washington, D.C. The company also has offices in Europe, Asia and Australia. Quintiles says that Outcome has designed, developed and managed more patient registries and post-approval studies than any other company. Outcome has conducted studies in more than 40 therapeutic areas in more than 80 countries.

Financial terms of the acquisition were not disclosed. With the deal, Outcome founder and President Richard Gliklich now takes on a new title as global head of late phase for Quintiles.

Quintiles is the largest provider of services to the pharmaceutical industry with about $3 billion in annual revenue. Company spokesman Phil Bridges said that the company has had “an aggressive acquisition strategy”since 2011. Acquisitions have long lead times and the announcement of the VCG and Outcome deals on the same day is a coincidence. Bridges said that the company does not grow for growth’s sake and the acquisitions give Quintiles opportunities to fill service offering gaps and meet needs of pharmaceutical companies.

“These acquisitions are both strategic,” Bridges said. “Quintiles is already known for the breadth of its offerings, yet we see additional opportunities for growth in certain areas.  These acquisitions are designed to augment our existing capabilities.”