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UPDATE 1-Quintiles profit rises as drug developers outsource research
August 1, 2013 / 11:32 AM / in 4 years

UPDATE 1-Quintiles profit rises as drug developers outsource research

* Second-quarter adj profit/share $0.50 vs est $0.46

* Revenue $1.29 bln vs est $942.9 mln

* Sees 2013 service revenue $3.76 bln-$3.81 bln vs est $3.81 bln

* Sees 2013 adj profit/share of $1.95-$2.05 vs est $1.88

Aug 1 (Reuters) - Quintiles Transnational Holdings, the world’s largest medical contract research provider, forecast a higher full-year profit than analysts had expected as more drugmakers use its services.

Quintiles, reporting as a public company for the first time, said new business rose 13 percent in the second quarter. Margins improved and adjusted net income rose in double-digit percentage terms, Chief Executive Tom Pike said in a statement.

The company, which listed on the New York Stock Exchange in May, has won business from cost-conscious pharmaceutical and biotechnology companies that are choosing to outsource clinical development of their drugs.

Its smaller peer, Charles River Laboratories International Inc, cited the same reason for the better-than-expected quarterly profit that it reported on Wednesday.

Durham, North Carolina-based Quintiles raised $947 million in its initial public offering. Its shares closed at $44.85 on Wednesday, worth 6.5 percent more than at the end of their first day of trading on May 9.

The company has a market value of $5.94 billion and says it has helped to develop or commercialize all of the top 50 best-selling drugs on the market.

On Thursday, Quintiles forecast a 2013 adjusted profit in a range of $1.95 to $2.05 per share on service revenues of $3.76 billion to $3.81 billion.

Analysts expected a full-year profit of $1.88 per share on revenue of $3.81 billion, according to Thomson Reuters I/B/E/S.

The company reported net income of $38.5 million, or 30 cents per share, for the second quarter. Revenue was $1.29 billion.

Excluding certain items, earnings were 50 cents per share.

Analysts on average had expected earnings of 46 cents per share on revenue of $942.93 million, according to Thomson Reuters I/B/E/S.

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