Specialising in Pharmaceutical and Healthcare Sales Recruitment, Innovex is the world’s largest commercial solutions organisation. Voted one of the top 50 Best Workplaces in the UK 2008.
In 1993, when Innovex wanted to acquire Clinical Research
Foundation ('CRF') from
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CH Boehringer, it turned to Montagu for help in underwriting
the £7.5 million (€12 million) funding required for the
Formed in 1979, Innovex's principal activity was the provision of
a database ranking pharmaceutical company clients in terms of
responsiveness to promotions. Building on its early success in this
niche market, Innovex identified a growing requirement amongst
pharmaceutical companies for more flexible human resourcing. When a
'blockbuster' drug arrives down the research pipeline (for leading
companies about every five years) extra human resources are needed
for relatively short periods of time in sales promotion and in
adding value through education and patient support. Innovex
capitalised on this growing trend towards outsourcing throughout
the 1980's and 1990's.
Innovex gradually expanded its range of services into the
provision of clinical research, starting with phases II - IV
clinical research projects. The acquisition of CRF gave Innovex
phase I capability and entrance into the important US market.
Montagu developed its relationship with Innovex as it grew into a
highly successful business. In early 1996, Innovex undertook a
recapitalisation and Montagu supported the business by providing a
further £18 million (€29 million) of equity. Later that year
Innovex entered into a merger with Quintiles Corporation to create
the world's leading clinical research organisation. The enlarged
group was listed on NASDAQ and valued Innovex in excess of £500
million (€800 million).
One of the key factors that drove the success of Innovex was its
recognition and response to the changing dynamics of the
pharmaceutical industry. From the early 1980's the industry was
coming under pressure from Governments and insurance companies to
keep their ever increasing drug related costs in check. The
industry's principal response was to look for savings in its
largest area of overhead, namely employee costs. The massive growth
in value of Innovex illustrates how private equity can be put to
work to help a successful business grow and ultimately maximise
value for all its shareholders on exit.