Quintiles ratchets up its expectations after a record quarter

Quintiles CEO Tom Pike

Quintiles ($Q) hit the $1 billion revenue mark for a third straight quarter, dialing up its full-year guidance as it expands its share of the global outsourcing market.

The CRO's service revenue jumped 9.7% in the second quarter, driven by 7.9% growth in its colossal product development business, which brought in $781.2 million, and a 15.6% leap in integrated healthcare services, which accounted for $254.3 million.

Quintiles netted $85.1 million in income on the quarter, a figure the company credits both to its sales growth and a nearly 45% reduction in general corporate expenses.

Now Quintiles is upping its revenue projection for the full year, lifting the upper end of its previous guidance to $4.2 billion. Driving the CRO's optimism is a 21.2% increase in net new business last quarter, accounting for $1.2 billion and representing a book-to-bill ratio of around 1.2. That jump sets Quintiles' backlog at almost $10.3 billion, priming the company for a shot at another record revenue year.

And a spate of recent deals have positioned the company to extend its market leadership in the CRO world, CEO Tom Pike said, especially in its integrated healthcare segment.

"Also this July, we completed the acquisition of Encore Health Resources. This acquisition extends Quintiles' capabilities and enhances our electronic health records (EHR) advisory expertise, an area that continues to grow in importance as payers, providers and biopharmaceutical customers increase their focus on real-world evidence," Pike said in a statement.

- read the results (PDF)

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