Quintiles’ fourth-quarter service revenues top $1 billion
Durham-based clinical trials manager Quintiles Transnational Holdings Inc.’s service revenues were up about 6 percent to more than a $1 billion for the fourth quarter of last year, making it a record quarter for the multinational company.
That was the first time in Quintiles’ history that the company has seen billion-dollar revenues in a single quarter. Also, the company’s service-revenue total also beat the average Wall Street analyst estimate for the quarter of $980 million, as compiled by Thomson Reuters I/B/E/S.
At constant currency values, the company’s revenues from its product development segment, which includes its contract clinical trials and associated laboratory and analytical services work, were up 10.7 percent.
Its revenues also got a boost in the quarter from the September acquisition of Novella Clinical, a Morrisville clinical resource business that specialized in contract research for cancer treatment development companies.
However, it reported another revenue decline from its integrated health services segment that includes the work of its contract drug sales force. At constant currency rates, revenues for the business unit were down about 1.1 percent.
Quintiles CEO Tom Pike said in a statement that the company entered 2014 positioned for growth with “strong 2013 performance.”
“2013 was great year for Quintiles, as we re-emerged as a public company in early May and achieved many milestones through the year,” Pike said in a conference call on Thursday. “One of the most recent was our first billion-dollar service revenue quarter in the company’s history.”
David Krempa, an equity analyst who tracks Quintiles’ results for the investment research firm Quintiles Inc. said that the company posted “some pretty solid growth” overall and their outlook for 2014 was slightly higher than forecast.
“The results were just a little better than what people were expecting,” he said. “They didn’t really blow away the numbers, (but they were) pretty solid.”
Krempa said the whole clinical research industry is growing pretty quickly as large pharmaceutical companies continue to outsource more drug development. The top four companies in the industry are posting similar results, he said, and are stealing business from some of the smaller players.
“Everyone who’s kind of a top-top-tier player like them…are basically seeing the same results,” he said.
For the quarter, the company’s net income was up more than 108 percent, or more than twice as much, in the quarter to $72.99 million. Its stock was trading up 4.33 percent Thursday afternoon to $51.58.