InVentiv posts loss despite rising revenues
Shares in InVentiv fell a little under 3 per cent on news of the $163m paper loss from continuing operations, closing at $10.15 on the Nasdaq on February 26.
“While we recognize last year was a difficult year for the pharmaceutical industry and for the US economy in general, our full year 2008 results illustrate the solid diversity of our service offerings, our business model and earnings sources,” commented InVentiv’s chief executive Blane Walter.
InVentiv’s cost-cutting efforts have been gaining pace and will continue throughput 2009, said Walter. Fourth-quarter operating income increased slightly to $32m.
Looking at InVentiv’s operating divisions, Walter noted that InVentiv Clinical – which provides services such as clinical trial management and monitoring – saw sales advance 14 per cent to $54.5m. A strong performance by the unit’s functional outsourcing division compensated for continued softness in the clinical staffing and recruitment business, said Walter.
InVentiv Communications – which provides advertising, public relations and other commercial services - continued to be impacted by “spending reductions of our clients in the fourth quarter,” said Terry Herring, InVentiv’s chief operating officer, on a conference call. Total revenues decreased 16 per cent to $74m, he noted.
InVentiv Commercial, which incorporates InVentiv’s contract sales business and some strategic consulting activities, had a strong performance in the fourth quarter, with total revenues up almost 20 per cent to $121m.
“We believe pharmaceutical companies are continuing to explore outsourcing solutions for their various sales and marketing functions,” said Herring. “Our pipeline remains strong for this segment.”
For the full-year, InVentiv’s revenues reach $1.12bn, up 15 per cent. The firm reiterated its earlier 2009 revenue guidance of $1.1bn-$1.2bn.
