) has entered into an agreement to acquire Octagon Research
Solutions Inc., a provider of clinical and regulatory information
management solutions for the pharmaceutical industry. This
acquisition will help Accenture better cater to its pharmaceutical
clients by achieving efficient global regulatory submissions. This
will enable companies to get their drugs in the research pipeline
quickly to the market and at lower cost. Efficient regulatory
compliance also ensures the drugs meet all necessary standards,
ensuring safety. The services offered will range from clinical data
collection to regulatory submissions management and will also help
extend Accenture's BPO services to the pharmaceutical industry. The
terms of the deal were however not disclosed.
See our full analysis on Accenture
Octagon is one of the largest users of the U.S Food and Drug
Administrations (FDA) electronic submission gateway. It has a staff
of 380 members and has completed 400 original applications.
It is also a well-recognized provider for the FDA and helps
establish clinical data conversion and training standards. It
will be fully integrated into Accenture's Life Sciences
industry group. The acquisition is subject to closing
conditions, including receipt of required regulatory approvals, and
is expected to close within 60 days. We can expect a sizable
jump in Accenture's outsourcing revenues from clinical research and
pharmaceutical companies because of this acquisition.
Outsourcing currently constitutes ~28% of our
Trefis price estimate for Accenture of $68
, which is nearly 15% above the current market price.
How a Company's Products Impact its Stock Price at Trefis