Standard & Poor's has downgraded inVentiv Health’s credit rating after the CRO posted weaker than expected first quarter results.
In April S&P gave inVentiv a ‘fair’ business risk profile but readjusted this down to ‘weak’ in the wake of disappointing first quarter results. Cash flow was below expectations and S&P fears synergies from the acquisitions of i3, PharmaNet, and other businesses are at least another year away.
“First-quarter results were weaker than expected, even after accounting for a previously announced project delay that hurt the Clinical segment. This leads us to believe inVentiv will increase business and expand margins at a significantly slower pace than previously expected”, S&P wrote.