UPDATE 1-Covance posts 22.7 pct rise in quarterly profit

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NEW YORK, July 30 (Reuters) - Clinical testing company Covance Inc (CVD.N) posted a 22.7 percent increase in profit on Wednesday due to increased revenue from early- and late-stage clinical testing.

The Princeton, New Jersey-based company said net profit for the second quarter was $50.9 million, or 80 cents per share, up from $41.5 million, or 64 cents per share, a year ago.

Excluding a one-time gain from the sale of its centralized ECG business in 2007, Covance earned 79 cents per share, which beat analyst expectations of 78 cents per share, according to Reuters Estimates.

Total revenue was $461.8 million, up from $404.1 million last year.

Early development sales rose 11.5 percent to $213 million, up from $191 million last year, led by toxicology and chemistry services.

Late-stage development rose nearly 18 percent to $223.8 million, up from $190 million last year, on a strong performance in the central laboratory and clinical development sectors.

As large drug markers seeks to cut costs, they are increasingly farming out clinical testing to companies like Covance. Such companies, called contract research organizations, have seen their shares rise this year despite turmoil in the broader market.

The company said it was confident it could deliver 20 percent growth in earnings per share to $3.18 in 2008, excluding one-time items.

Covance shares closed 1.5 percent higher to $88.60 on Nasdaq before the earnings were released, and were unchanged in extended trading. (Reporting by Deepa Seetharaman; Editing by Tim Dobbyn)