MedSource Blazing Trail With Growth, Industry Recognition
Steady, rapid expansion of Houston-based CRO underscores larger trends for biotech and health care research
HOUSTON (Oct 27, 2016) – Houston-based MedSource is celebrating three years of remarkable growth with awards and industry recognition, even as it prepares for a five-year trajectory that would see it, once again, double in size. The clinical research organization (CRO), which currently has 115 employees, experienced 260 percent revenue growth over the course of two years, starting in 2013. It added an international office during this same period and expanded its model globally. MedSource was recently named, for the fourth time, to the Inc. 500/5000, the prestigious list issued by Inc. magazine, ranking the country’s fastest-growing private companies. MedSource was also recognized, last month, as the sixth fastest growing company in Houston, marking its fifth appearance on the Houston Business Journal Fast 100 List.
MedSource assists biotech and pharmaceutical companies with drug development efforts, with a particular focus on the neurosciences and oncology. An even greater differentiating factor for MedSource, though, is its target audience of small- to mid-sized biotech companies. This sets it apart from others in the industry who have predominantly sought to participate in the largest, global research programs and lays a foundation for even more significant growth.
“When the economy began to make a positive turn in 2011, and activity in our industry began to pick up, we shifted our focus more toward biotech companies where there was a lot of innovative, early-stage research going on," said Eric Lund, MedSource president and CEO. “They weren’t really being given the attention they needed, and we felt that was a better platform for us; it put us in the position to begin relationships on the ground level as they discovered compounds, began early-stage research and focused on their development strategy. As they progressed from small early-stage programs into larger late-stage programs, our team and platform were able to scale with them.”
MedSource saw a significant growth spurt from 2002-2007, before the recession hit. The company experienced the same challenges as most others for the years that followed, and then emerged in 2011 as a stronger, leaner enterprise. While the recovery has been sluggish across several sectors, the research industry overall has grown significantly, and MedSource has been able to capitalize on the large amount of venture capital and private equity resources that are being driven into the biotech market.
A growing portion of the capital earmarked for scientific research has come from government sources: the Cancer Prevention and Research Institute of Texas (CPRIT) has been a major contributor to the bioscience startup renaissance in the state of Texas, distributing $1.67 billion in grants for cancer research since it started issuing awards in 2009. MedSource has worked with some of the companies that are CPRIT award-winners, helping them to develop Phase I and Phase II oncology studies – and it stands ready to serve as a resource to up-and-coming oncology-related companies, especially as markets across the U.S. host increasingly fertile landscapes for biotech startups.
The current landscape signals no slowing in biotech investment, and MedSource has a corresponding growth plan. Based on the level of funding in the market now, the company sees a four- to five-year period that its offering will be in particularly high demand, and Lund projects that his company could grow at an average of 17% per year for the next five years. Within that timeframe, Lund also sees the opportunity for his company to branch into other areas of therapeutic research, particularly as it relates to the aging U.S. population.
“As medicine becomes more sophisticated, efficient, and effective, there will be a greater need to serve an aging population facing complex diseases,” Lund said. “I don’t think there are going to be many companies that will focus on serving that segment of research because it is so tough to manage. This is where we excel – complex diseases and complex study designs. We have deliberately built a team with tremendous depth in these areas.”
MedSource has been recognized before, not only for its growth, but also for the company’s leadership and innovation. Last year, the company received the CRO Leadership Award, presented by Life Science Leader magazine. Out of 1300 global CRO companies considered, MedSource was rated top 5 in all of the award’s five categories, and was the only U.S. company to do so.
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About MedSource
MedSource is an award winning, full-service clinical research organization (CRO) focusing on complex study designs and complex diseases with a particular expertise in oncology and central nervous system disorders. MedSource began as a specialized clinical monitoring group and has consistently expanded to add services and staff to increase value to clients. With offices throughout North America and the United Kingdom, the company’s focus on quality, consistency and transparency has been foundational to its growth. www.medsource.com