Axiom Case Study

Contract Analysis

Syneos Health
Contracts Platform
INC Research and inVentiv Health (now Syneos Health™) partnered with Axiom on contract analysis in connection with $7.4 billion merger.

Fast Facts

  • Axiom supported contract review as part of the merger of two biopharmaceutical solutions companies, INC Research and inVentiv Health, now Syneos Health
  • Axiom assembled a project team of 12 people to identify gaps in the collected documents
  • Leveraging its Contracts Intelligence Platform, Axiom delivered contract data and reported insights
  • The solution offered improved visibility into both entities’ contracts, highlighting potential synergy

A merger of two leading biopharmaceutical solutions companies

The biopharmaceutical solutions industry is experiencing a boom – with the global Contract Research Organization (CRO) market expected to exceed more than $36 billion by 2020 and the Contract Commercial Organization (CCO) market expected to reach $34 billion by 20201.

It’s no longer just small biopharmaceutical companies that rely on outsourcing clinical trials and commercializing therapies; large-scale pharmaceutical, biotechnology, and medical device organizations look to CROs to run their trials and support their drug through its lifecycle.

In August 2017, two leading companies in this space announced a merger of equals: North-Carolina based INC Research, a public company and leader in the CRO space, and inVentiv Health, a private company including a global CRO and CCO. The merger created a global biopharmaceutical solutions organization with combined net revenue of more than $3.2 billion, now Syneos Health (NSDQ: SYNH). The company is now the second largest biopharmaceutical outsourcing provider and one of the top three CROs globally. During the merger, INC Research and inVentiv Health called on Axiom during the due diligence period to review both companies’ contracts to help better understand the scope of contractual obligations of the newly combined entity.

“We partnered with Axiom during the due diligence process to review contracts with some of our largest vendors, determining and filling gaps in the collected documentation to highlight synergies and risks for the new entity. This process enabled us to quickly pinpoint risks like upcoming terminations, price freeze provisions and non-transferability clauses.”
Andrew Shaw
VP & Assistant General Counsel, Business Legal Lead, Syneos Health

Axiom’s Contracts Intelligence Platform speeds contract review with embedded Artificial Intelligence, providing a golden source of contract data

Axiom leveraged its Artificial Intelligence-assisted technology, available in Contract Intelligence Platform, to enable its team of contracts analysts to efficiently find, identify and review clauses in deal documents in selected contracts.

Contract data from the collected contracts was aggregated and loaded into Axiom’s Contracts Intelligence Platform, providing stakeholders visibility into individual provisions that they could quickly compare, removing the manual process of sifting through individual contracts.

The process simplified counterparty contract review as, once the proper firewalls and protections were put in place, both parties could separately access the contract data, conduct specific searches unique to their due diligence needs and interpret the results to inform decisions.

“Axiom’s approach to contract analysis applied AI-powered technology to surface the most important clauses in the highest-value commercial agreements, allowing a skilled reviewer to prioritize their time in the right places. Axiom’s technology, their Contracts Intelligence Platform, helped our team analyze and compare provisions across the two entities faster and at a lower cost than the status quo alternative,” Shaw noted.

Driving efficiency across the business through tech-enablement and robust processes

The newly formed company officially relaunched in January 2018 as Syneos Health, so it was critical that the contract review process was streamlined and swift. For Purvesh Patel, EVP, Interim General Counsel and Corporate Secretary, Syneos Health, Axiom’s solution delivered.

“The biopharmaceutical solutions industry is growing; it’s fast-paced and competitive. We must re-evaluate every area of business to find more efficient ways to work – including identifying where we can improve process and add technology, which in turn will promote a more efficient in-house legal function,” said Patel.

“Axiom delivered a more efficient way to work and a smart AI-enabled technology purpose built for M&A contract review, plus legal minds who knew how and when to deploy both.”
Purvesh Patel
Executive Vice President, Interim General Counsel and Corporate Secretary, Syneos Health

Sources

1. INC Research and inVentiv Health to merge: http://newsroom.incresearch.com/phoenix.zhtml?c=25...

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