Quintiles revenues top $1 billion for second consecutive quarter
Durham-based Quintiles Transnational Holdings Inc.’s service revenues topped $1 billion in the first quarter, marking the second consecutive quarter that the company’s service revenues have come in above the billion-dollar mark.
Quintiles, a clinical research organization whose major business is in the contract management of clinical trials for pharmaceutical companies, reported service revenues for the first quarter of $1.005 billion, which were up 8 percent year-over-year.
Its total revenues were more than $1.3 billion.
The company’s net income was up about 87 percent to about $90.2 million.
“We continued our momentum from the fourth quarter of 2013 and are off to a strong start in 2014,” said Tom Pike, Quintiles CEO, in a prepared statement in a news release about the company’s financials in the quarter.
Pike said the company’s product development segment, which is the company’s contract clinical trials business, “continues to execute on all fronts.”
Revenues from the segment grew about 9 percent. Sales from the business that handles contract drug sales – called integrated health services -- were up about 6 percent.
Also in the filings about the company’s financials, Quintiles revealed that its board has approved a restructuring that’s expected to mean layoffs for about 400 employees. The restructuring is primarily expected to affect the company’s product development business.
The company’s board approved the restructuring plan in February The layoff plan was expected to cost the company $13 million; it had spent about $1 million related to the restructuring in the first quarter.
Last year, the company also announced a plan to layoff 400 workers in 2013. Phil Bridges, a spokesman for Quintiles, had said in August that that was a global number, and that the company was also recruiting for about 1,000 new positions at that time.
For the restructuring this year, Quintiles spokeswoman Mari Mansfield said the company is not disclosing details.
“The workforce fluctuates on project and need and business needs,” she said.
However, she did say that the company’s workforce has grown in the last five years, and the company is recruiting for 1,500 open positions.
The company employs 2,400 people in North Carolina and 29,000 employees doing business globally in 100 countries.
Quintiles shares were trading up about 4 percent to $49.15 per share on Thursday morning after the company released its financial results.