Icon RFP value jumps 50% as bundling of services increases

By Nick Taylor

- Last updated on GMT

Related tags Bristol-myers squibb

Icon RFP value jumps 50% as bundling of services increases
The value of RFPs sent to Icon in 2011 jumped 50 per cent as companies that have yet to ink strategic deals began bundling services.

Soaring RFP (request for proposal) values suggests that some of the biopharma companies that are yet to embrace strategic outsourcing are starting to move away from traditional tactical models.

There are a number of larger RFPs that have not yet moved into the strategic arena but do indicate that a number of our customers are bundling services together. We’re seeing more RFPs across thefull range of our services​”, Ciaran Murray, CEO of Icon, told investors.

In the past these customers would have sourced services separately but are now choosing a single partner for multiple tasks, such as early phase development, late stage trials, and central laboratory.

As these companies continue to evolve their outsourcing models strategic partnerships are possible. Icon is in several ongoing talks about alliances, Murray said, after inking deals with Pfizer, Shire and, Bristol-Myers Squibb in the past year.

Strategic implementation

The possibility for more strategic partnerships worries sceptics though. Icon added 700 staff last year to support the Pfizer deal and, sceptics say, inking other deals that need upfront investment could pressure the service provider.

Murray said the scale of the Pfizer deal makes it a “little more complex​” but emphasised it is still a similar process to its other strategic relationships and poses no unique challenges for Icon.

We’ve been through a number of strategic deals. Pfizer is just the latest of these. Sometimes I think the commentary is like we only have one customer and this is the first thing we did​”, Murray said.

The Pfizer deal is on track, Murray said, and other strategic deals are progressing well. Growth at Icon is reliant on the success of these deals but demand from smaller clients is healthy too, Murray said. Continuation of this healthy demand is reliant on factors outside of Icon’s control though.

While encouraging, we still view this as a key risk for the group if the recent uptick in biotech funding slows again in light of the sluggish macroeconomic environment​”, John Kreger, equity analyst at William Blair, wrote.

Related news

Show more

Related products

show more

Using Define-XML to build more efficient studies

Using Define-XML to build more efficient studies

Content provided by Formedix | 14-Nov-2023 | White Paper

It is commonly thought that Define-XML is simply a dataset descriptor: a way to document what datasets look like, including the names and labels of datasets...

Overcoming rapid growth challenges with process liquid preparation

Overcoming rapid growth challenges with process liquid preparation

Content provided by Thermo Fisher Scientific - Process Liquid Preparation Services | 01-Nov-2023 | Case Study

A growing contract development manufacturing organization (CDMO) was challenged with the need to quickly expand their process liquid and buffer preparation...

Why should you use clinical trial technology?

Why should you use clinical trial technology?

Content provided by Formedix | 01-Nov-2023 | White Paper

New, innovative clinical trial technology is helping to revolutionize the research landscape. COVID-19 demonstrated that clinical trials can be run much...

Related suppliers

Follow us


View more