inVentiv responds to Moody’s concerns about integration

The contract research organisation (CRO) updated Outsourcing-pharma.com on the ongoing integration process after we spotted that Moody’s​ and Standard and Poor’s (S&P)​ both cited it as a factor in their recent decisions to lower their opinions of the firm.

inVentiv CEO Paul Meister told us that: “The integration of PharmaNet and i3 is essentially complete. We have put a strong leadership structure in place across inVentiv’s Clinical segment, and have aligned our back office and administrative functions​.“ 

Meister also reiterated that PharmaNet president Jeff McMullen, several other executives and a “vast team of experienced managers and clinician​s“ from PharmaNet and i3 will be part of inVentiv’s CRO unit, which is something that S&P said would be important for the prosperity of the business​.

Demand​

We also asked if PharmaNet/i3 had seen demand for services decline in recent times, particularly from former customers which have adopted the strategic partnering model and limited the number of CROs they work with.

In response Meister told us that: “Demand from individual customers can fluctuate, but on the whole demand remains strong across inVentiv’s Clinical segment.​ 

“PharmaNet/i3 has continued to win work from a broad number of global pharmaceutical and biotech companies that are seeking our expertise in key therapeutic areas such as oncology, pain, inflammatory, and CVD." ​

The inVentiv chief also said the extra scale provided by the acquisitions is creating new opportunities for inVentiv’s clinical business and that: “Clients are selecting us for strategic engagements that we would not have been considered for when PharmaNet and i3 were separate businesses​.”

This was similar to the interpretation in Moody’s note, where the rating agency predicted that the size of inVentiv’s clinical business relative to other CROs – coupled with the diversity​ of its offering​ - “could result in increased cross-selling opportunities and stronger client relationships​.”

Project delays​ 

Meister also spoke about project delays – again one of the factors that Moody’s raised as a concern – telling Outsourcing-pharma.com that while such issues are having an impact, the business expansion provided by PharmaNet/i3 will help address this in the longer term.

“Project delays, which are an inherent part of the industry, have had a near-term impact on our top line, but we believe will have little long-term impact on the business overall. The combination of new wins, the anticipation of the delayed projects coming back on line in late 2012 and early 2013, and improved operational efficiency and organizational structure as a result of our successful integration will enhance our growth and profitability as we progress through 2012 and 2013​.”