inVentiv Health, the US-based provider of clinical development, launch and commercialisation services that was acquired last year by private equity firm Thomas H. Lee Partners, is beefing up its contract research offering by paying around US$400 million for the i3 clinical development businesses of Ingenix.

After announcing a further acquisition, of specialist management consulting firm Campbell Alliance, inVentiv also outlined an organisational re-alignment to create three self-standing operating segments: Clinical, Consulting and Commercial.

The first of these will comprise the three businesses inVentiv is acquiring from Ingenix – i3 Research, i3 Pharma Resourcing and i3 Statprobe – as well as inVentiv’s existing clinical businesses, which include inVentiv Clinical Solutions, MedFocus and Smith Hanley. 

The newly constituted Clinical segment will operate under the i3 brand and Glenn Bilawsky will continue as chief executive officer (CEO) of i3. According to inVentiv, the combined organisation “will be one of the top-tier contract research organisations in the world with locations across North America, Latin America, Europe, the Middle East, Asia and Asia Pacific”.

For its part, Ingenix is pooling its commercialisation, safety, regulatory and late- phase service offerings within the newly created Ingenix Life Sciences division, to be led as president by Lee Valenta, chief operating officer of Ingenix for the last five years.

Ingenix Life Sciences will offer global solutions for evaluating health economics outcomes and late-phase research, as well as market access and reimbursement, data and informatics, epidemiology and drug safety, patient-reported outcomes and regulatory consulting services.

The new division will include the current Innovus, Quality Metric, Pharma Informatics and Drug Safety/Epidemiology business units, as well as the CanReg and ChinaGate Regulatory Consulting businesses.

Definitive agreement

inVentiv Health has signed a definitive agreement to purchase the i3 clinical development businesses, which generate around US$400 million in annual gross revenues. The deal is subject to customary closing conditions and is expected to close in the first half of this year. 

No financial terms were disclosed for the acquisition of Campbell Alliance, which is expected to close in the first quarter of 2011. Campbell Alliance will operate independently as the Consulting segment of inVentiv, with John and Ann Campbell, CEO and president respectively, continuing to lead the organisation as well as maintaining an equity-based stake in Campbell Alliance along with their management team.

The inVentiv Consulting segment will retain the Campbell Alliance brand. inVentiv Advance Insights, the company’s existing consulting business, will be folded into Campbell Alliance.
The remaining pieces of the legacy inVentiv Health organization – Communications, Selling Solutions, Selling Accelerators and Patient Outcomes – will make up the new Commercial segment, operating as inVentiv Health. This will be the largest pillar of the new organisation, with annual revenues of around US$900 million.

Paul Meister, executive chairman of inVentiv Health, has been appointed CEO of the re-aligned businesses, with immediate effect. Meister is founder and chief executive officer of Liberty Lane Partners, a private equity firm and part of the investment group that acquired inVentiv in August 2010.