Start-up to form early-phase umbrella group
shape itself into a global early-phase drug development services
group through an acquisition-based strategy.
The three-week old firm, Quotient BioResearch, announced its first purchase this week in the form of UK drug development services company HFL.
Based in Fordham, Cambridgeshire, with 130 staff, HFL's capabilities include bioanalysis, biomarker research, pharmaceutical analysis and clinical laboratory services. The company also has a sports forensic testing division.
"HFL is the first acquisition for Quotient BioResearch and an excellent fit for our strategy of building a major presence in early stage drug development and related services," said Quotient chief executive Paul Cowan.
The early-phase corner of the CRO market is a natural focus for Quotient because Cowan is the former CFO of Inveresk Research Group - a CRO specialising in the same area - that eventually merged with global early-phase heavyweight Charles River Laboratories in 2004.
In addition, Cowan told Outsourcing-Pharma.com that early-phase services were chosen because "this area has a record of strong profitability and growth and there are high barriers to entry due to the specialisation required."
Now that Quotient's first acquisition has been made, the firm plans to make four to six further acquisitions over the next three years, he said.
"The company is interested in complimentary businesses in Europe and North America ."
As it gathers more companies under its umbrella, Quotient will effectively operate as a contract research organisation (CRO) focused on the early phases of drug discovery, from bioanalytical testing to Phase I clinical services.
Each acquired business will still operate as an individual entity, however, there will be a limited amount of integration, with the sharing of best-practices, knowledge and know-how, said Cowan.
Commenting on this unusual acquisition-based strategy, Cowan said that "it is easier to acquire and integrate these types of businesses than start from scratch."
