Accenture positioned to provide full service BPO regulatory
services for the pharmaceutical industry
Accenture (NYSE: ACN) has entered into an agreement to acquire Octagon
Research Solutions, Inc., a provider of clinical and regulatory
information management solutions and software for the pharmaceutical
industry. Terms of the transaction were not disclosed.
The acquisition will enhance Accenture's ability to help its
pharmaceutical clients achieve more efficient global regulatory
submissions that will enable them to get medicines to market more
quickly, safely and at a lower cost. Accenture's capabilities will be
expanded to include comprehensive clinical and regulatory services -
from clinical data collection to regulatory submissions management.
Accenture also will extend its business process outsourcing (BPO)
services portfolio targeting the pharmaceutical industry.
Octagon's 380-member staff has deep experience in clinical data services
and regulatory submissions, with 400 original applications completed,
and the company is the fifth largest user of the U.S. Food and Drug
Administration's (FDA) electronic submission gateway. Octagon is a
recognized provider for the FDA in establishing clinical data conversion
and training standards and has deep knowledge of regulatory affairs
combined with well established relationships developed by partnering
with regulatory authorities. Octagon will be fully integrated into
Accenture's Life Sciences industry group.
"We believe that the timing is perfect for this acquisition as our
clients are increasingly under pressure to reduce the drug development
and approval timelines to get products to market more quickly, safely
and cost effectively," said David Boath, North American managing
director for Accenture's Life Sciences industry group. "Our clients have
an urgent need to focus resources on the scientific breakthroughs and
also to improve the efficiency of their clinical and regulatory
operations. Octagon's capabilities and experience will enable Accenture
to provide comprehensive services spanning regulatory operations,
submissions management, clinical data conversion and clinical data
management. The acquisition will enable Accenture to offer what we view
as the industry's first comprehensive regulatory services solution with
a global footprint."
According to James C. Walker, Octagon's chairman and CEO, "Octagon and
Accenture will bring together a powerful combination of industry
expertise and global capabilities that will help pharmaceutical
companies achieve sustainable drug development models and get products
to market more quickly and at lower cost. Octagon has completed tens of
thousands of regulatory submissions in countries around the world. The
acquisition will strengthen our longstanding commitment to the
pharmaceutical industry and provide clients with a comprehensive, global
regulatory service that will deliver tangible business value."
Octagon is headquartered in Wayne, Pa., and maintains additional U.S.
and international operations in Mountain View, Calif.; London; and
Bangalore, India.
The acquisition is subject to closing conditions, including receipt of
required regulatory approvals, and is expected to close within 60 days.
About Accenture
Accenture is a global management consulting, technology services and
outsourcing company, with more than 249,000 people serving clients in
more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions,
and extensive research on the world's most successful companies,
Accenture collaborates with clients to help them become high-performance
businesses and governments. The company generated net revenues of
US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page
is www.accenture.com.
About Octagon Research Solutions, Inc.
Octagon Research Solutions is the world leader in clinical and
regulatory information management solutions to the life sciences
industry. Through an integrated suite of outsourced services, strategic
consulting, and innovative technology, Octagon optimizes the entire drug
development lifecycle - from clinical data collection to regulatory
submission. Founded in 1999, Octagon has served over 350 clients on
three continents, including global pharmaceutical brand leaders and
emerging start-ups. The company is headquartered in Wayne, PA, and
maintains additional U.S. and international operations in Mountain View,
CA, London, United Kingdom, and Bangalore, India.
Forward-Looking Statements
Except for the historical information and discussions contained herein,
statements in this news release may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements involve a number of risks,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied. These include,
without limitation, risks that: the company and Octagon will not be able
to close the transaction in the time period anticipated, or at all,
which is dependent on the parties' ability to satisfy certain closing
conditions, including obtaining required regulatory approvals; the
transaction might not achieve the anticipated benefits for the company;
the company's results of operations could be adversely affected by
volatile, negative or uncertain economic conditions and the effects of
these conditions on the company's clients' businesses and levels of
business activity; the company's business depends on generating and
maintaining ongoing, profitable client demand for the company's services
and solutions, and a significant reduction in such demand could
materially affect the company's results of operations; if the company is
unable to keep its supply of skills and resources in balance with client
demand around the world and attract and retain professionals with strong
leadership skills, the company's business, the utilization rate of the
company's professionals and the company's results of operations may be
materially adversely affected; the consulting and outsourcing markets
are highly competitive, and the company might not be able to compete
effectively; the company's results of operations (including its net
revenues and operating income) and the value of balance-sheet items
originally denominated in other currencies could be materially adversely
affected by unfavorable fluctuations in foreign currency exchange rates;
the company could have liability or the company's reputation could be
damaged if the company fails to protect client and company data or
information systems as obligated by law or contract or if the company's
information systems are breached; the company's Global Delivery Network
is increasingly concentrated in India and the Philippines, which may
expose it to operational risks; as a result of the company's
geographically diverse operations and its growth strategy to continue
geographic expansion, the company is more susceptible to certain risks;
the company's results of operations could materially suffer if the
company is not able to obtain sufficient pricing to enable it to meet
its profitability expectations; if the company's pricing estimates do
not accurately anticipate the cost, risk and complexity of the company
performing its work or third parties upon which it relies do not meet
their commitments, then the company's contracts could have delivery
inefficiencies and be unprofitable; the company's work with government
clients exposes the company to additional risks inherent in the
government contracting environment, including risks related to
governmental budget and debt constraints; the company's business could
be materially adversely affected if it incurs legal liability in
connection with providing its services and solutions; the company's
results of operations and ability to grow could be materially negatively
affected if the company cannot adapt and expand its services and
solutions in response to ongoing changes in technology and offerings by
new entrants; outsourcing services subject the company to different
operational risks than its consulting and systems integration services;
the company's services or solutions could infringe upon the intellectual
property rights of others or the company might lose its ability to
utilize the intellectual property of others; the company has only a
limited ability to protect its intellectual property rights, which are
important to the company's success; the company's ability to attract and
retain business and employees may depend on its reputation in the
marketplace; the company's alliance relationships may not be successful
or may change, which could adversely affect the company's results of
operations; the company may not be successful at identifying, acquiring
or integrating other businesses; the company's profitability could
suffer if its cost-management strategies are unsuccessful, and the
company may not be able to improve its profitability through
improvements to cost-management to the degree it has done in the past;
many of the company's contracts include performance payments that link
some of its fees to the attainment of performance or business targets
and/or require the company to meet specific service levels, which could
increase the variability of the company's revenues and impact its
margins; changes in the company's level of taxes, and audits,
investigations and tax proceedings, or changes in the company's
treatment as an Irish company, could have a material adverse effect on
the company's results of operations and financial condition; if the
company is unable to manage the organizational challenges associated
with its size, the company might be unable to achieve its business
objectives; if the company is unable to collect its receivables or
unbilled services, the company's results of operations, financial
condition and cash flows could be adversely affected; the company's
share price and results of operations could fluctuate and be difficult
to predict; the company's results of operations and share price could be
adversely affected if it is unable to maintain effective internal
controls; the company may be subject to criticism and negative publicity
related to its incorporation in Ireland; as well as the risks,
uncertainties and other factors discussed under the "Risk Factors"
heading in Accenture plc's most recent annual report on Form 10-K and
other documents filed with or furnished to the Securities and Exchange
Commission. Statements in this news release speak only as of the date
they were made, and Accenture undertakes no duty to update any
forward-looking statements made in this news release or to conform such
statements to actual results or changes in Accenture's expectations.
