The firm announced the move, which includes a $225m credit facility and a $2.2bn loan due in 2018, and explained that: “Current financing terms are attractive, and banks are looking to invest in the right companies.”
A Quintiles spokeswoman told Outsourcing-pharma.com that, in addition to repaying debt, proceeds will be used for corporate actions that “could include acquisitions, strategic alliances with customers that include a capital investment, share repurchase or a shareholder dividend.”
The news follows just weeks after Quintiles formed a strategic partnership with Takeda, under which it will support all of the Japanese drugmaker’s development programmes aside from those focused on oncology.
Quintiles also recently entered a long-term partnership with South Korean conglomerate Samsung as part of the latter’s effort to move into the biomanufacturing sector.
The plan is to set up a manufacturing facility with Samsung investing $266m and Quintiles putting in an initial some of $30m and providing research and consulting services on all aspects of the drug industry.
But, while Quintiles’ comments about partnering were of interest, much media attention has focused on its reference to acquisitions with some, like Jefferies & Co analyst David Windley, speculating the firm will invest in early-stage capacity.
He told News & Observer that: “an acquisition is in early-stage drug development would help Quintiles compete for new contracts with large, publicly traded rivals such as Covance of New Jersey.”