Accenture to Expand Clinical and Regulatory Information Management Services and Software Capabilities with Agreement to Acquire Octagon Research Solutions
Accenture positioned to provide full service BPO regulatory services for the pharmaceutical industry
NEW YORK; Aug. 2, 2012 – 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.
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.
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.
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