Clinical Supplies Management (CSM), a company founded in 1997 by Dr. Gerald Finken, Ph.D., stands as a testament to entrepreneurial vision in the pharmaceutical sector. Starting as a niche provider specializing in drug returns and reconciliation, CSM evolved into a comprehensive solution provider. By the time Great Point Partners engaged with CSM, the company was experiencing impressive 25% annual growth, fueled by reinvesting profits into infrastructure and expanding its just-in-time delivery capabilities. CSM had become the leading independent clinical trials supplies company, uniquely focused on serving specialty pharmaceutical and biotechnology clients.
Addressing Key Challenges for Expansion with Great Point Partners
CSM’s management recognized that to sustain its growth trajectory and capture a larger market share, establishing a physical presence in Europe was crucial. While CSM effectively served clients in U.S.-centric Phase II and Phase III trials, the absence of a European facility limited its ability to fully participate in the predominantly global Phase III trials. These trials typically span both the U.S. and Europe. Furthermore, the landscape of larger clinical packaging businesses presented an opportunity. These larger entities often prioritized big pharma clients, leaving mid-sized biotechnology and specialty pharmaceutical companies underserved and dissatisfied. This gap in the market signaled significant growth potential for CSM, but it also underscored the necessity for strategic growth capital and the expertise that partners like Great Point Partners could provide.
Strategic Partnership with Great Point Partners: A Catalyst for Transformation
CSM found in Great Point Partners a strategic ally with deep industry knowledge, proven capabilities in sourcing tuck-in acquisitions, and a substantial $600 million public equity life sciences fund. This fund boasted strong relationships with numerous biotechnology companies at the CEO and CFO levels, making them an ideal partner. In late 2016, CSM partnered with Great Point Partners to accelerate its growth strategy and provide partial liquidity to its founder. Recognizing the founder’s vision for European expansion, Great Point Partners played a pivotal role in identifying and facilitating two strategic European acquisitions within the first four months of the investment. Theorem Clinical Supplies, located in Frankfurt, Germany, was identified through Great Point Partners‘ network via a London business broker and acquired in December 2016. Following swiftly in January 2017, CSM acquired the B&C Group in Brussels, Belgium, a company with whom CSM had previously collaborated on a smaller scale for U.S.-Europe trials. As CSM scaled globally, Great Point Partners further supported the company’s evolution by assisting in the transition of CSM’s Founder and Owner to Chairman. This was achieved by recruiting Scott Houlton, the former President of Catalent’s Clinical Services division, to steer CSM into its next phase of growth.
Exponential Growth and Global Reach: The Results of Partnering with Great Point Partners
Within just two years of partnering with Great Point Partners, CSM achieved a remarkable tripling of its revenue. This exponential growth was directly attributable to the strategic expansion into Europe through the two key acquisitions completed within the first three months of Great Point Partners‘ initial investment. These tuck-in acquisitions transformed CSM into a global entity, capable of effectively serving customers conducting global Phase III trials. This strategic move not only broadened CSM’s geographic footprint but also significantly accelerated the company’s growth rate, surpassing its historical averages and solidifying its position as a leader in the clinical supplies management industry, thanks to the strategic support and vision of Great Point Partners.
