Kendle’s income and cancellations surge

06-Nov-2008 - Last updated on 06-Nov-2008 at 12:35 GMT

Kendle International has posted impressive third quarter results, despite seeing a dramatic increase in the number of contract cancellations during the period.

The contract research organisation (CRO) recorded an operating income of $15.9m for the third quarter, up from $14.2m in the corresponding period of 2007, but contract cancellations rose by over 500 per cent to $38m.

This was offset by a rise of 21 per cent in net business awarded in the quarter to $212m, which has given Kendle the belief that its successful 2008 can continue into next year.

Candace Kendle, CEO of Kendle, said: "Our impressive results for the quarter are a testament to the strength of our late stage markets, the value of our business model and the expertise and determination of our associates worldwide.

“Coupled with our broad therapeutic and geographic reach, we believe we are well positioned to achieve our strategic growth initiatives and to meet our customers emerging outsourcing needs."

In recent years Kendle’s management has attempted to expand its offering into new geographic regions and therapeutic areas, which appears to have been a successful policy.

This should equip Kendle to prosper in the current financial climate, in which more companies may be looking to outsource but also more may cancel contracts as they attempt to balance the books.

Kendle’s successful third quarter is the continuation of a good 2008, in which total business authorisations have reached $1bn, up by 16 per cent on the whole of 2007.