With operations spanning the globe, Pharma-Bio Serv Inc. has positioned itself as a leader in validation and regulatory-compliance consulting services. Today, the company is one of CARIBBEAN BUSINESS Book of Lists' Top 400 companies and a case study on how businesses can face Puerto Rico's recession-turned-depression.
This year, after four years of negative growth, Pharma-Bio Serv is expecting a 40% increase in revenue. Elizabeth Plaza, Pharma-Bio Serv's board chairwoman, president & chief executive officer, attributes the company's success to its employees and clients.
"The success of Pharma-Bio Serv rests in the trust customers have placed in us, as well as in our employees," she said. "No company can be in compliance and control if they don't value their human capital."
Plaza began her career as a scientist with Warner-Lambert Co., in Vega Baja, where she performed product transfers to Puerto Rico and worked on validations. Warner- Lambert subsequently would merge with Pfizer Inc.
In 1989, Plaza moved to McNeil Pharmaceutical in Dorado. Working as senior scientist in the technical-services department, she transferred technologies and products to Puerto Rico, as well as supported product manufacturing and validation projects.
After her professional success with Warner-Lambert and McNeil, in 1993 Plaza ventured out to start her own company, purchasing a pharmacy in Bayamón. However, while presenting her letter of resignation at McNeil, she was asked to stay on as a consultant.
"I was running two businesses at the same time," Plaza said, explaining that by the end of the first year she had three pharmaceutical-consulting clients in addition to the pharmacy.
"At that moment, I knew what I was going to be doing the rest of my life," she said, adding that the realization led to the founding of Pharma-Bio Serv in 1993.
Plaza would divest from the Bayamón pharmacy five years later to concentrate on Pharma-Bio Serv. Yet, Plaza acknowledges she learned a great deal from the experience, being close to customers as well as managing employees and suppliers.
Pharma-Bio Serv has since grown, opening new divisions and establishing operations around the globe. The company is traded on the over-the-counter pink sheets market under the PBSV ticker symbol. Being publicly traded shows the company takes itself seriously being regulated and Sarbanes-Oxley-compliant, Plaza explained.
While historically the company has provided validation and regulatory- compliance consulting services, Pharma-Bio Serv's expansion has included the establishment of PharmaServ Academy, which provides educational programs on best practices in the areas of regulatory compliance, project management and risk management, among others.
Another major move came in 2008, when Pharma-Bio Serv purchased its current Dorado headquarters from Pfizer and invested $2 million in, among other areas, building an analytical laboratory. Today, the International Organization for Standardization (ISO) 9001-certified laboratory, known as Scienza Labs, provides microbiology and analytical-chemistry testing services, in addition to research & development of laboratory methods and methods transfer, among other services.
It employs more than 20 professionals and serves more than 30 clients from the pharmaceutical, life-sciences, medical-devices, food-product, education and environmental industries, as well other private organizations.
In 2010, Pharma-Bio Serv purchased Integratek, which would become the company's technology division, dedicated to information and business-technology integration that helps companies reduce costs, implement compliance controls and expand their businesses.
Lastly, the SharpStaff division offers specialized temporary human-resources services, with a variety of professionals in various areas capable of stepping into temporary or full-time positions and everything in between.
The new divisions represent how Pharma-Bio Serv has had to adapt to changes in the pharmaceutical industry.
Another way Pharma-Bio Serv has changed is by going global. In 1998, the company started receiving consulting contracts outside of Puerto Rico.
"Mostly, our growth has been through word of mouth," Plaza said, explaining that clients in other countries started asking for Pharma- Bio Serv based on its performance in Puerto Rico.
With the demand, in 2006 the company purchased the existing operations of a company in Pennsylvania. Later, in 2009, Pharma-Bio Serv established operations in Ireland. Both facilities have seen positive growth and today the Ireland offices, for example, account for 15% of the company's revenue.
"Many of the projects were going to Ireland [instead of Puerto Rico], so we decided to follow them," Plaza said.
Most recently, the company has opened operations in Asia and is working to establish and expand operations in Spain.
"The market demands in Puerto Rico are the same as those in Ireland, Spain, the States and Asia," Plaza said. "Our offerings and services ensure our clients are in compliance with regulators and follow best practices."
Plaza said the Puerto Rico headquarters provide the other global offices with administrative-finance, human-resources and information-systems services.
"My strategy has been to create jobs in Puerto Rico," she said.
However, she warns that when you do business internationally, you have to understand the culture, market, clients and language. That is why every Pharma-Bio Serv country manager is a local.
Today, as Plaza expects Pharma- Bio Serv to grow revenue by 40%, she explained the company had to implement a series of cost-control measure to face Puerto Rico's recession-turned-depression, including: reducing employee salaries and cutting employee benefits, as well as performing other structural changes.
"Today, we are seeing the fruits of these measures," Plaza said, explaining that the company is starting to reverse some of the measures. "Looking back, the company strengthened itself because of the human capital Pharma-Bio Serv has been able to retain during the economic downturn, and we are happy to be able to say we did it with their understanding and commitment, thus, we want to make them part of the rewards."
Plaza plans to continue adapting to the changing pharmaceutical industry and believes Puerto Rico must grow in terms of R&D.
http://www.caribbeanbusinesspr.com/cb_content/news02.php?nw_id=5762&ct_id=76