Consolidation: Why It’s Good for Companies but Bad for Clients

There is a “super sizing” trend in the clinical supply industry as larger vendors continue to acquire their smaller competitors. In the last year alone, there were seven acquisitions that occurred between vendors. The trend, though, is that these acquisitions aren’t limited by offering. Clinical supply vendors have made inroads into research, manufacturing, commercial contract pharma, and a range of other specialties. While this approach might be great for the companies, the question that it poses is does it benefit the client? Is big always better?

There are significant side effects to this type of growth, and small and mid-sized companies should consider these factors when choosing a clinical supply vendor:

  1. As companies continue to grow, so does their workload and timelines can often fall through the cracks. They are forced to become more bureaucratic, creating more obstacles when it comes to decision making, communication, and following regulations.
  2. The focus on services tends to drift from clinical supplies to manufacturing and what was once expertise in one area shifts to average servicing in multiple areas; one-stop shops are becoming less popular as companies realize that their customers require specialized needs.
  3. Larger public companies demand larger revenue, and smaller clients can be marginalized as the focus turns toward larger clients.

Xerimis services all customers, not just big pharma. Why does this matter? Xerimis doesn’t have the external pressures of private equity metrics or shareholder demands and therefore can focus solely on our customers, their needs, and delivering value for patients. We are a family-owned business that operates as a streamlined internal organization. Building strong relationships is what allows us to cater to personalized needs, and our range of capabilities allows us to handle any large project without missing a deadline.

We believe that by focusing strictly on clinical supplies, we are able to hold a high standard of excellence in our field and stay far from the mediocrity that comes from trying to do too many things well.

Learn more about how Xerimis can support your project.