The critical role that contract research organizations (“CRO”s) can play in the development and ultimate commercialization of new pharmaceutical and biological products is universally appreciated. But, from a business perspective, the steady, typically linear growth of a successful CRO is less glamorous that the potential ‘hockey stick’ escalation in the value of a product company that might occur upon achieving major developmental milestones or following a drug approval or launch. CRO corporate valuations are then frequently simply a low multiple of revenues.

How then does a San Diego pre-IND CRO come to jostle alongside high tech and software companies in the close competition for a Red Herring 100 award?

John M Newsam, Tioga Research’s CEO, who will present at the Red Herring 100 finalists’ event in Newport Beach, June 6-8 2016, explains “First, CROs are critical enablers of exciting health care developments; the opportunity to help progress of a prospective drug product that might offer real health benefits to people, especially to those close to you, is a massive motivation. Secondly, Tioga Research has cutting edge, proprietary technologies that allow our adept formulation scientists, working with our clients, to be more innovative in formulations research than many other organizations in the field, large or small. But, from a Red Herring and investor perspective, probably the main interest is our business model. We emphasize alliance management. And we have a creative approach to business development that, we think, sets us apart from the conventional CRO valuation models. We look forward to learning from our high tech colleagues at the finalists’ event in Newport Beach; there may also be things for others to learn from our own business model as a CRO.”