IQVIA is the leading contract research organization (CRO) and data analytics provider for the life sciences industry. The company is the result of the 2016 merger between Quintiles, the leading CRO, and IMS Health, the leading clinical data provider for life science companies. The main thesis of the merger was that the business combination would allow for the leverage of data across both segments and introduce new products for its customers. The two most successful product introductions as a result of the merger are next generation clinical trials and real world evidence.
Good write up. Im somewhat familiar with the company and it’s dominance in the drug data space. Not sure if you knew this, but an interesting fact of their origin story is that the company was founded by Raymond Sackler - yes, that Sackler of Oxy notoriety - and was a outgrowth of all the pharma marketing Raymond did even before Purdue Pharma
Hi Hamilton, thanks for the summary. Do you reckon the CRO‘s are better positioned than the CDMO‘s? How would you compare the industry leader in the contract development and manufacturing business, Swiss-based Lonza, in comparison to IQVIA? Where are the economics more favourable?
I'm unfamiliar with this space, but I appreciate how clearly you laid out many of the core value drivers. The following quote especially caught my attention:
"Typically, a drug will have a 20 year patent life span, and that usually begins at discovery. This means that the time spent on clinical trials can take away from the time the life sciences company can earn patent protected profits."
I follow you a while now and came along this analysis today while screening after CROs. Did you never analyse Medpace? I really like their fundamentals, their strategy and also their insider ownership. If you checked them out, what are your thoughts compared to IQVIA? (I am a shareholder of MEDP, consider to buy also Lonza)
No all good thanks! I was just wondering whether you are an expert along the entire value chain & hence wanted to understand the competitive difference.
Good write up. Im somewhat familiar with the company and it’s dominance in the drug data space. Not sure if you knew this, but an interesting fact of their origin story is that the company was founded by Raymond Sackler - yes, that Sackler of Oxy notoriety - and was a outgrowth of all the pharma marketing Raymond did even before Purdue Pharma
Hi Hamilton, thanks for the summary. Do you reckon the CRO‘s are better positioned than the CDMO‘s? How would you compare the industry leader in the contract development and manufacturing business, Swiss-based Lonza, in comparison to IQVIA? Where are the economics more favourable?
I'm unfamiliar with this space, but I appreciate how clearly you laid out many of the core value drivers. The following quote especially caught my attention:
"Typically, a drug will have a 20 year patent life span, and that usually begins at discovery. This means that the time spent on clinical trials can take away from the time the life sciences company can earn patent protected profits."
Well done!
I follow you a while now and came along this analysis today while screening after CROs. Did you never analyse Medpace? I really like their fundamentals, their strategy and also their insider ownership. If you checked them out, what are your thoughts compared to IQVIA? (I am a shareholder of MEDP, consider to buy also Lonza)
No all good thanks! I was just wondering whether you are an expert along the entire value chain & hence wanted to understand the competitive difference.