This book deals in general with mergers and acquisitions in the CRO industry and more
specifically with reasons for MandA success factors during the MandA process and why MandA
can fail in the Contract Research Organization industry. The pharmaceutical industry faces
increasing obstacles in respect to the development and introduction of new medications. That
has to do with stricter requirements for admission and sharper controls by authorities. Today
the research and development of a new drug can easily consume more than $800 million and
lasting between 10 and 15 years. Due to these facts pharmaceutical companies are looking for an
alternative in the drug development process. A popular alternative is the outsourcing or
in-house working with Contract Research Organizations (CRO). CRO are specialized in
coordination and monitoring of drug development activities. The size of the CRO market in 2012
was around $32 billion and had an estimated market growth of around 9 12% for 2013. Increased
outsourcing and allocation of RandD money towards CRO reflects a driving force for prospective
growth. Contract Research Organizations consider mergers and acquisitions as a vital solution
to achieve their objectives.
