BioClinica grew service revenues in the fourth quarter and predicted the trend will continue in 2011 when it will “eliminate certain duplicate functions”.
The eClinical and imaging company closed fiscal 2010 with results broadly in-line with its full-year performance. BioClinica attributed performance to expansion of its eClinical suite, integration of acquisitions, new product launches and strengthening of existing services.
Mark Weinstein, CEO and president of BioClinica, said the strategy has helped the company attract “new clients, both large and small” and provide additional services to its 150 existing customers. BioClinica began working with 29 new clients in 2010.
Earlier this year the eClinical strategy was criticised by shareholder Nicusa Capital but BioClinica views it as a key to its plans. GlaxoSmithKline and Cephalon are clients and development of the business is expected to support five to 12 per cent growth in service revenues in fiscal 2011.
BioClinica expects its eClinical capabilities to account for the bulk of the growth. This unit is predicted to grow by up to 20 per cent, with imaging posting a low single-digit increase.
Eliminate duplicate functions
During its fourth quarter conference call with investors BioClinica emphasised it continued to invest in its imaging capabilities, viewed by Nicusa as the core business, throughout 2010.
Investments in imaging technology, notably BioPacs and BioRead, improved efficiency and resource use across US and European operations at BioClinica. As a result BioClinica will “eliminate certain duplicate functions”.
The restructuring will result in a charge, primarily for severance and facility restructuring costs, of $1.6m (€1.2m). BioClinica half of the charge to occur in the first quarter, with the rest spread of the following six months.
Double-digit growth in the fourth quarter took service revenues up to $16.5m. However, reimbursement revenues dipped and this contributed to a drop in operating income for the quarter.
Full year figures also featured lower reimbursement revenues and this, coupled to an uptick in total costs and expenses, resulted in operating income declining eight per cent.
Backlog at the end of fiscal 2010 totalled $110.7m, up year-on-year by 12 per cent. BioClinica views the growth in backlog as evidence of ability to convert a “strong proposal pipeline into contracts”.