inVentiv Health mulls investor takeover offer
New Jersey-based inVentiv, which offers clinical trial management and contract sales services, confirmed it has set up a committee to consider the proposal but added that it will not comment further “unless it enters into a definitive agreement.”
The news was accompanied by a hike in share price and speculation about potential suitors with LabCorp, Cardinal Health and McKesson emerging as likely bidders according to unconfirmed reports in the New York Post and Dow Jones.
2009 performance
If and when a sale is agreed inVentiv’s potential new owners will take control of a firm that ended 2009 with a mixed set of financials.
For the 12-months ended December 31, 2009 operating income on a generally-accepted accounting principles (GAAP) basis was $101m (€75m), up from the $162.2m impairment charge-related loss it achieved in 2008.
Total revenue for the year was down, sliding 4 per cent to $1.07bn, as were the contributions from inVentiv’s commercial and clinical divisions which fell 5 and 6 per cent respectively to $413m and $209.5m, respectively.
inVentiv’s communications unit also struggled in 2009, with sales falling 9 per cent to $310m. However, on a more positive note, the firm said that revenue for the fourth quarter was up 17 per cent to $86m thanks to a number of new business wins.
The firm’s patient outcomes division also made gains, with revenues for the year climbing 11 per cent to a record of $139m for the year, due to new wins in “patient compliance [and] expansion of services within our patient assistant programme.”
Speaking at the time, inVentiv CEO Blane Walter said the results “demonstrate the importance of having a diverse product offering” and positive impact of operational changes the firm made in 2009.
