New contracts return Covalent Group to profitability

By Kirsty Barnes

- Last updated on GMT

Related tags Revenue Clinical trial Contract research organization

Covalent Group has won several new clinical trial contracts to the
tune of $2.1m (€1.7m) and said it expects the windfall to help it
return to profitability for the second quarter.

As a result of the new contracts Covalent has also managed to add three new customers to its books.

The clinical research organization (CRO) said the contracts are for consulting services and developmental support of new clinical trials and various changes-of-scope for existing studies.

Specific services will include protocol design and strategic consulting, clinical operations, and medical writing in the therapeutic areas of cardiovascular disease, infectious disease/vaccines, oncology, and diabetes.

The firm expects to begin receiving revenue for the contracts in the current second quarter on a proportional performance basis as services are performed on the specific project.

The cash injection is especially welcomed by the CRO, who in the first quarter of this year reported disappointing financial results, with net revenue of only $2m compared to $3.2m for the comparable 2005 quarter.

At the time Covalent attributed this decline to the level of clinical trial activities at the start of 2006 and delays in study start-up from several new contracts awarded late in 2005 and said it was pinning its hopes on a better second quarter performance, which it is now poised to receive.

"We now expect our second quarter 2006 net revenues to be in the range of $3m to $3.4m, reflecting our strong growth in backlog for the quarter ended March 31, 2006 as well as favourable trends in our new business contract signings and pipeline,"​ said Kenneth Borow, president and CEO for Covalent Group.

"We expect to return to profitability with good visibility for sustained profitability for operations for the remainder of 2006."

Related news

Show more

Related products

show more

Using Define-XML to build more efficient studies

Using Define-XML to build more efficient studies

Content provided by Formedix | 14-Nov-2023 | White Paper

It is commonly thought that Define-XML is simply a dataset descriptor: a way to document what datasets look like, including the names and labels of datasets...

Overcoming rapid growth challenges with process liquid preparation

Overcoming rapid growth challenges with process liquid preparation

Content provided by Thermo Fisher Scientific - Process Liquid Preparation Services | 01-Nov-2023 | Case Study

A growing contract development manufacturing organization (CDMO) was challenged with the need to quickly expand their process liquid and buffer preparation...

Related suppliers