Syneos Health Inc. reported higher-than-expected earnings Tuesday after recognizing its merger with inVentiv Health and acquisition of Kinapse, according to a filing with the Securities and Exchange Commission.
Syneos’ adjusted net income for the third quarter stood at $78.8 million, or 75 cents per share. The earnings of the biopharmaceutical company were 7 cents higher than analyst estimates polled by Yahoo Finance.
The Raleigh-based company reported an 88.3 percent increase in GAAP service revenue to $1.11 billion. The significant increase in service revenue can be largely attributable to its August 2017 merger with inVentiv Health
“We had a solid third quarter across the business, including the return of our Commercial Solutions Segment to year-over-year growth,” said Alistair Macdonald, chief executive officer of Syneos Health, in a statement.
Its commercial solutions segment generated an additional $10.9 million in revenue, a 4.7 percent increase in comparison to the same period in 2017.
Its clinical solutions segment, which traditionally generates over twice as much revenue as its commercial solutions segment, saw a 1.9 percent increase in revenue to $543.6 million.
The company’s net new business awards were $920.2 million during the third quarter. This represents a book-to-bill ratio of 1.17x.
A book-to-bill ratio is the ratio of orders received to units shipped and billed for the period, according to Investopedia. With a ratio greater than one, Syneos is experiencing a greater demand than supply.
Macdonald is optimistic that the acquisition of Kinapse, a life sciences consulting company, and merger with inVentiv Health will further strengthen Syneos’ offering and spur future growth.
“With our merger integration efforts progressing ahead of schedule in all phases of operations and delivery, we believe we are well-positioned to create a strong foundation for 2019 and beyond.” said Macdonald.
The company’s share price was up 6.28 percent to $49.40 at midday Tuesday.
The announcement can be found here.
