Editor’s note: Tara Gladwell is vice president of operations for Rho, a full-service CRO based in Chapel Hill, N.C. Tara received her undergraduate degree in Biology from Guilford College and her M.B.A. from Duke University’s Fuqua School of Business. She joined Rho in 2001 as a project manager after several years working as a study manager for a CRO in Seattle.
CHAPEL HILL, N.C. – The flurry of industry consolidation in the contract research organization (CRO) industry, in North Carolina’s Research Triangle Park region and around the world, has many observers speculating on the role small and mid-sized CROs will play in the future providing drug development services for pharmaceutical and biotechnology companies.
In the wave of IPOs, tuck-ins and mega acquisitions, the world’s largest drug companies are partnering with equally large CROs, which are only continuing to expand. Small and mid-sized CROs provide an effective alternative offering stability and quality customer experiences.
A focus on scientific integrity and precision, and a culture of customer attention and reliability, proven over time, provide a differentiation and competitive edge. A small size can be an advantage when coupled with a culture focused on building customer trust and long-term objectives. Reliability is the key to success for small and mid-sized CROs. High employee retention and percentage of repeat customers creates a bright future for CRO’s regardless of the size of the company.
When a merger and acquisition occurs in the CRO world, drug companies may become unsettled and lack the confidence that clinical trials will not lag during the turmoil of combining resources or layoffs. This creates opportunities for small and mid-sized CROs with all intentions to remain privately held because they are not distracted by business dealings and answering to investors every financial quarter.
A small size also gives drug companies the assurance that the expertise of senior staff will be leveraged with all customers and in all phases of a trial, from project design, initiation and management to expertise that identifies and prevents problems before they arise.
The size of the CRO also doesn’t preclude helping drug companies of all sizes. From helping emerging and mid-size biotech companies with a full range of services to working with “Big Pharma” as functional service providers, small and mid-sized CROs can accomplish the goals of speed, cost efficiency and high-quality results.
While industry and financial observers see small and mid-sized CROs being forced to consider mergers and acquisitions, Rho is committed to remaining private and growing organically to ensure relevance and preserve a unique company culture that has fostered success for almost 30 years. Consistent growth and stability is a winning formula to shape a CRO that customers can trust.
