Innovex

In 1993, when Innovex wanted to acquire Clinical Research Foundation ('CRF') from
CH Boehringer, it turned to Montagu for help in underwriting the £7.5 million (€12 million) funding required for the transaction.

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.