CROs & eClinical firms post generally positive results
Economic uncertainties and pharma-specific issues have had a detrimental effect on clinical trial service providers, particularly contract research organisations (CRO), in recent financials but there is now hope that the situation is improving.
In its third quarter results Parexel reported 16.9 per cent year-on-year growth in backlog, taking the total to $2.4bn (€1.8bn), as a result of $606.9m of new business wins. This helped generated a net book-to-bill ratio of 1.60, up from 1.25 a year ago.
Consolidated service revenues grew by 10.1 per cent to $291.2m but as reported income from operations fell from $26.4m to $25.8m. Total costs increased, in part because of a $4.1m restructuring expense. Furthermore, cancellations increased from $95.8m to $140.3m.
Icon reports solid Q1
First quarter results at Icon were very similar to the figures published a year ago, with net revenues dipping slightly from $219.8m to $219.1m. Operating income was $26.8m, compared to $26.9m in the first quarter of 2009.
Icon generated net new business wins of $265m in its most recent results, representing a book-to-bill ratio of 1.2. The CRO posted exactly the same figures in the first quarter of 2009.
Despite the similarity with the 2009 results Icon believes the CRO market is improving, with Peter Gray, CEO of the company, commenting that he believes “the conditions for a return to growth are coming into place”.
eClinical on the rise
Perceptive Informatics, the eClinical unit of Parexel, grew service revenues year-on-year from $35.6m to $38.3m and this upward trend was echoed in financials published by Phase Forward and OmniComm.
Total revenues at Phase Forward were $57.2m, up from $48.8m a year ago, but operating income fell to $3m as a result of higher operating expenses.
OmniComm grew its revenues by 11 per cent, bringing in $2.7m, and reported that new contracts increased by 162 per cent to $1.5m.
