Syneos revenue tops $1bn in Q3

By Melissa Fassbender contact

- Last updated on GMT

(Image: Getty/Tzido)
(Image: Getty/Tzido)

Related tags: Syneos Health

Strong collaboration across the company’s clinical, commercial, and integration solutions teams led to a “solid performance,” said Syneos CEO Alistair MacDonald.

The company reported total net awards of $920m for the third quarter (Q3), awards which were “broad-based across all customer segments”​ and “particularly strong”​ among its small- to mid-sized customers.

Though discussions regarding strategic relationships remain ongoing with other large pharma customers, MacDonald said on the earnings call.

The Numbers

  • Total revenue of $1.11bn and $3.24bn for the three and nine months ended September 30, 2018, respectively
  • Combined company net new business awards of $920.2m and $2.85bn for the three and nine months ended September 30, 2018, respectively
  • Clinical solutions segment net awards of $676m and $2.08bn for the three and nine months ended September 30, 2018, respectively
  • Commercial solutions segment net awards of $244.2m and $772.4m, for the three and nine months ended September 30, 2018, respectively

As per continuing investments, Syneos is augmenting its integrated offerings, expanding teams and investing in specialized technology platforms, he explained.

“We also continued to enhance our data strategy to optimize how data and digitization fuel our biopharma extrapolation model, similar to our strategy regarding technology and investigative sites,”​ MacDonald added.

However, an analyst commented that bookings have been growing slower than usual. Regarding this, MacDonald said, “As we transitioned into what we now believe is the number two CRO by revenue, we’ve become the new kid on the block in the big pharma. And those negotiations, discussions generate costs and MSAs [master service agreements] fully in place takes a little bit of time.”

MacDonald said he expects this area to accelerate going into 2019, with healthy markets on both the clinical and commercial side. “As we get back into our stride, if you like, momentum-wise in clinical, we’re looking at accelerating the growth from where we are at,”​ he said.

Filling in the gaps

Moving forward, the priority for capital deployment will be reducing debt. The next is opportunistic, MacDonald said, as the company looks to remain “nimble”​ in the M&A space.

“I think we’ve got some work to do in both sectors,”​ he said, “and as we learn more and more about the model that we have and we listen more and more to customers, we’re seeing gaps where we have the capability, but maybe not always the scale.”

MacDonald said the company is “constantly”​ looking at capability in Asia-Pac, an area in which it recently expanded via its acquisition of Kinapse​.

Regarding the acquisition in August of this year, MacDonald said Kinapse closed several gaps in Syneos’ offering. The company also is seeing “some nice revenue synergies or opportunities to drive revenue synergies from that group,” ​he added. “It gives us a lot more strength in the consulting horsepower in Europe as well as a bigger footprint in Asia-Pac on the service side.”

Related news

Show more

Related products

show more

Manufacturing Cyto and Non-Cyto Drugs in One Facility

Manufacturing Cyto and Non-Cyto Drugs in One Facility

Baxter BioPharma Solutions | 05-Nov-2018 | Technical / White Paper

Recent market reports suggest increasing product niches, which may lead to decreasing numbers of units per product, making dedicated facilities less practical....

Baxter’s Oncology Contract Manufacturing

Baxter’s Oncology Contract Manufacturing

Baxter BioPharma Solutions | 29-Aug-2018 | Product Brochure

Baxter BioPharma Solutions’ FOYA award-winning facility in Halle/Westfalen, Germany, offers state-of-the-art parenteral cGMP manufacturing at one location,...

Discover Fermion’s new API unit 4 in Hanko

Discover Fermion’s new API unit 4 in Hanko

Recorded the 04-Sep-2018 | Webinar

Join this webinar to learn more about Fermion’s new manufacturing unit 4 at the Hanko site. This webinar will provide virtual tour to our new state of...

Related suppliers

Follow us

Products

View more

Webinars