Lowe Acquisition Of IPR Will Give Marketing Firm Access To CRO Clients

The acquisition of the contract research organization International Pharmaceutical Research puts the marketing firm Lowe Health Care Worldwide in a good position to gain preferred access to Pfizer, J&J/Merck and SmithKline.

The merged company will provide the "opportunity to strengthen the marketing potential of a brand by defining its positioning earlier in product development and synchronizing brand communications with clinical research," Lowe said. Lowe and IPR have been presenting a number of existing clients with integrated development and marketing packages.

In addition to clinical trial management, IPR focuses on research for market positioning making it a good fit for a CRO/marketing combination.

IPR's specialties include pharmaceutical outcomes research, support of claims for existing marketed products and Rx-to-OTC switches. The CRO managed Phase IV studies supporting OTC switches for Imodium-AD, Pepcid AR, and Nicorette gum.

Lowe's major accounts are with Schering-Plough, supporting its respiratory care line, and Roche, for Xenical consumer and professional advertising.

While Lowe's acquisition of IPR marks the first time a marketing firm has acquired a CRO, the concept of partnering drug development and communications businesses has previously been explored.

Large CROs have steadily added communications components to their service offerings, including marketing, public affairs and sales support.

Parexel, for example, offers market analysis, branding and marketing communications services. Quintiles' contract sales and marketing business grew 90% in 1998, aided by the acquisition of the market research firm Scott-Levin (¹ (Also see "Quintiles Adds Information Services To Contract Research & Sales Base" - Pink Sheet, 21 Dec, 1998.)).

Merger discussions between Lowe and IPR began in early 1999 and were finalized on Nov. 9. IPR will retain its name and management under CEO Peter Fratarcangelo, PhD. Headquartered in New York City, Lowe had billings of $452 mil. in 1998.