Bend Research reinvents itself under CEO Rod Ray

| Print |  Email
Articles - May 2010
Friday, April 16, 2010
_ND35988
BEND RESEARCH
bendres.com
CEO: Rod Ray
FOUNDED: 1975
2009 GROSS REVENUES: under $30 million
EMPLOYEES: 159
FUN FACT: 18 employees have Ph.D.s
PHOTOS BY JON MEYERS

You could say Rod Ray’s high-school sweetheart got him where he is today. Her father, then owner of Bend Research, gave Ray a summer job building an 1,800-foot post-and-rail fence around the 40-acre Tumalo property to keep out cows.

The fence is long gone (as is the sweetheart), but Ray is not. He kept coming back to work at Bend Research every summer and Christmas vacation during his undergrad years at Oregon State University. He returned permanently after getting a Ph.D. in chemical engineering and has spent his entire 27-year career working for Bend Research in development, chemical engineering and directing the engineering department.

Now as CEO he is reinventing the company’s business model to make Bend Research a leader in pharmaceutical drug-delivery research.

Bend Research, founded in 1975, specializes in developing ways that make it possible for drugs to enter the body and go to the places they are meant to treat. “A lot of those drugs have physical properties that make them quite difficult to work in your body,” Ray says. Those problems include not being able to dissolve in water, be digested by the body or be released over a period of time.

Bend Research worked exclusively for the pharmaceutical giant Pfizer between 1994 and 2008, when it grew from $10 million to $40 million in annual revenue with state-of-the-art facilities and research capabilities.

Ray, 54, became CEO in 2008. Two weeks later, Pfizer ended its contract with Bend Research as a result of consolidation and downsizing. Ray suddenly was confronted by the daunting challenge of needing to immediately grow Bend Research’s clientele from nothing.

Pfizer gave Bend Research the rights to technologies it had developed. “I didn’t know at the time how truly fair Pfizer was going to be to us,” Ray says. “If they had not done those things, we wouldn’t have grown fast enough to thrive.”

But Bend Research wasn’t yet out of deep business weeds. “Our new business without Pfizer, I knew, would be different.” Ray says. Costs were cut 25% by eliminating 25 positions and extraneous departments. Bend Research now employs 159 people. Initial clients resulted from connections made through Pfizer, and it was critical to create a quality product that would retain those clients for future projects.

“We worked our rear ends off,” says Ray.

_ND35876
_ND35918
_ND36062

It’s paid off. In 2008, 100% of revenues came from Pfizer. In the first quarter of 2009, it was 5%. Bend Research now has 40 clients; almost all of them are repeat customers and hail from the East Coast, Europe and China. Ray estimates gross revenues this year will be more than $30 million. That’s under the $40 million mark it had during the Pfizer years, but Ray predicts steady growth. “The key to growth is doing high-quality work for the clients we have,” he says.

Ray uses what he calls the “alliance model” of working with a client. Bend Research works closely with the pharmaceutical company to improve a drug’s capabilities instead of being an isolated contractor. “We always try to work on a drug in a team rather than on our own,” he says. “It works better to work with the client who knows their drug really well, and we know technology real well.”

And it makes Bend Research “a line item in their budget.”

Future growth will not only result from maintaining long-term relationships with clients, but also marketing Bend Research as a problem-solving company.

“The real key is deciding what problem you are trying to solve on a particular drug. Sometimes they appear to be insoluble, but they won’t go through the wall of your body. That’s a permeability problem,” Ray says. “If you’re not solving the right problem, you’re wasting everyone’s time and money.”

Ray is also considering expanding the company’s offerings. Bend Research is adding a 15,000-square-foot building that will be used for small-scale commercial manufacturing. “Right now…we only make supplies for the testing phase,” he says. “But the key is to advance [the drug companies'] medicines toward the markets. It’s satisfying because their medicines are being used to cure diseases.” 

AMANDA WALDROUPE
 

More Articles

Balancing Act

July/August 2015
Friday, July 10, 2015
BY DAN COOK

The Affordable Care Act has triggered a rush on health care plan redesign, a process fraught with hidden costs and consequences.


Read more...

Reader Input: Road Work

March 2015
Wednesday, July 15, 2015

Oregon's roads are crumbling, and revenues from state and local gas taxes are not sufficient to pay for improvements. We asked readers if the private sector should help fund transportation maintenance and repairs. Research partner CFM Strategic Communications conducted the poll of 366 readers in February.

0315 input01 620px

 

Reader comments:

"I feel private enterprises are capable of operating at a higher efficiency than state government."

"This has been used in Oregon since the mid-1800s. It is not a new financing method. This form of financing may help Oregon close its infrastructure deficit by leveraging funds."


Read more...

Apartment Mania

Guest Blog
Thursday, June 18, 2015
4805983977 11466ce1d6 zBY BRAD HOULE | CFA

While most categories of commercial real estate have performed well, one of the most robust has been apartment buildings.


Read more...

10 Innovators in Rural Health

July/August 2015
Monday, July 13, 2015
BY AMY MILSHTEIN | PHOTOS BY JASON E. KAPLAN

Telemedicine, new partnerships and real estate diversification make health care more accessible in rural Oregon.


Read more...

Stemming the tide of money in politics

Linda Baker
Wednesday, June 10, 2015
 jeff-lang-2012-thumbBY LINDA BAKER

Jeff Lang and his wife Rae used to dole out campaign checks like candy.  “We were like alcoholics,” Lang says. ”We couldn’t just give a little.”


Read more...

Preserving the Legacy

July/August 2015
Monday, July 13, 2015
BY KIM MOORE | PHOTOS BY JASON E. KAPLAN

A New York floral and gift business takes on the iconic Harry & David brand.


Read more...

Modern design defines new Portland indoor market

The Latest
Thursday, June 25, 2015
thumbSnøhetta JBPM exterior www mir noBY KIM MOORE | RESEARCH EDITOR

An international architecture firm known for its design of the National September 11 Memorial Museum Pavilion in New York unveiled its plan this week for a modern indoor/outdoor food market at the foot of the Morrison Bridge in downtown Portland.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS