Accenture Expands Into Clinical And Regulatory Information Services

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Accenture ( ACN ) 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.

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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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: ACN , HPQ , IBM , UNH , WLP

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