Accenture Expands Into Clinical And Regulatory Information Services

-34.94%
Downside
347
Market
226
Trefis
ACN: Accenture logo
ACN
Accenture

Accenture (NYSE:ACN) has entered into an agreement to acquire Octagon Research Solutions Inc., a provider of clinical and regulatory information management solutions for the pharmaceutical industry. This acquisition will help Accenture better cater to its pharmaceutical clients by achieving efficient global regulatory submissions. This will enable companies to get their drugs in the research pipeline quickly to the market and at lower cost. Efficient regulatory compliance also ensures the drugs meet all necessary standards, ensuring safety. The services offered will range from clinical data collection to regulatory submissions management and will also help extend Accenture’s BPO services to the pharmaceutical industry. The terms of the deal were however not disclosed. [1]

See our full analysis on Accenture

Octagon is one of the largest users of the U.S Food and Drug Administrations (FDA) electronic submission gateway. It has a staff of 380 members and has completed 400 original applications. It is also a well-recognized provider for the FDA and helps establish clinical data conversion and training standards. It will be fully integrated into Accenture’s Life Sciences industry group. The acquisition is subject to closing conditions, including receipt of required regulatory approvals, and is expected to close within 60 days. We can expect a sizable jump in Accenture’s outsourcing revenues from clinical research and pharmaceutical companies  because of this acquisition.

Outsourcing currently constitutes ~28% of our Trefis price estimate for Accenture of $68, which is nearly 15% above the current market price.

Relevant Articles
  1. Why Has Accenture Stock More Than Doubled Since Late 2018?
  2. Cognizant Technology Solutions’ Stock To Continue Its Rally?
  3. Demand Recovery To Propel Accenture Stock Past $300?
  4. Has Accenture Stock Peaked?
  5. Up 16% This Year, Accenture Stock Headed Back Down?
  6. Accenture Stock Peaked At $200?

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. Accenture Newsroom, newsroom.accenture.com, August 2, 2012 []