Research-driven origination and the identification of high growth potential

In 2020, SCP started thematic research of the outsourced pharma services market, identifying five sub-sectors for deeper deal-focused research. The safety services and pharmacovigilance (“PV”) market was identified as a key target because of the higher volume of drugs entering clinical trials, the increased regulatory scrutiny in both clinical trial and commercial phase safety monitoring and heightened patient awareness regarding safety.

Using its research, our team was able to identify the Clario subsidiary, Drug Safety and Pharmacovigilance Services Solutions (“DSS”) early as a target investment and prioritise specific areas of diligence to underwrite a highly focused investment thesis.

Drug Safety and Pharmacovigilance Services Solutions

Our investment thesis for DSS is to build a leading tech-enabled pharma safety services platform through acquisitions, further automation, and organic growth in partnership with pharmaceutical clients.

Today, DSS is a leader in providing outsourced services to support pharma companies’ clinical safety and PV commitments. The business is headquartered in Delaware, US, and has more than 2,500 staff located in the EU, US, Japan and India, supporting more than 35 long-term clients. Services include collecting, detecting, evaluating, assessing, and disseminating data on adverse effects associated with clinical and commercial medicinal products.

To enable these services and reduce costs, DSS has designed and implemented a range of proprietary automation technologies.

Complexity Solved

DSS was division of diversified services provider Clario and required a carve-out to be planned and executed. Our experience in operational transformation, including carve-outs, gave SCP a competitive edge in the bidding process and provided the vendor with a faster and more certain execution than other parties. This resulted in SCP becoming the preferred bidder and eventual winner. Carve-outs are about fast paced change and stabilising around a new operating model that bridges signing, closing and a period of gradual transition thereafter. The DSS transaction closed in March and the carve-out has been successfully executed subject only to migration of some IT services and launch of a new brand through 2022.