INC will not receive any proceeds from the sale of the Class A common stock, which will likely be sold by major shareholders, including affiliates of Avista Capital Partners and Teachers' Private Capital, the private investment arm of Ontario Teachers' Pension Plan (OTPP) Board. OTPP is the largest single-profession pension plan in Canada, managing about $110bn in net assets.
The shareholders stand to make about $400m if the shares sell for the price of the stock as of Tuesday’s closing price of $49.77.
Since its IPO, INC’s stock price has ranged from a low of $19.61 on November 7, 2014, to a high of $50.13 on July 31.
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The secondary offering comes as late last month INC reported strong quarterly results and raised its guidance for the rest of 2015. The growth comes as the company in Q2 laid off about 60 of its employees, primarily across the US and EU, and within its Clinical Development Services operations group and several corporate administrative functions.
The company says these restructuring activities will be complete by the end of the year and that INC currently has about 6,100 employees in over 50 countries across six continents, with about 57% of its workforce located outside the US.
The SEC filing also revealed that INC’s top two customers are various subsidiaries of Otsuka, which accounted for about 15% of INC’s net service revenue, and subsidiaries of Astellas Pharma, which accounted for about 10% of net service revenue.
As far as future work is concerned, approximately 68% of INC’s $1.7bn in backlog as of June 30, 2015 was tied to clinical trials in CNS (central nervous system) (31%), oncology (24%), and other complex diseases (13%), such as genetic disorders and infectious diseases. INC’s top five customers represented about 66 compounds in 40 indications across 167 active projects in 2014, the company added.