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5 interesting things from Quintiles IPO filing

9:16 pm by | 3 Comments

The rumors, it seems were true after all. In an environment where initial public offerings by life science companies have all but dried up, Quintiles, the largest contract research organization, has filed documents with the Securities and Exchange Commission seeking to raise up to $600 million in an IPO.

This is Quintiles’ second IPO. Its first was in 1994 but it went private again in 2008 with private equity owners TPG Capital and Bain Capital.

The move comes less than a year after Dennis Gillings, the founder, stepped down as CEO and became executive chairman.

When the rumors of an IPO were just beginning to rev up, Jessica Gladstone, a senior analyst at Moody’s told Bloomberg: “I view the fact that they have a new CEO now as potentially a sign that they’re preparing their next leg of growth or next strategy, which could include an IPO…An IPO could also be a way to reduce leverage and an exit strategy for the owners.”

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S1 filings often yield some interesting facts about the company and its place in in the market it would usually shield from view. Here are 5 interesting things gleaned from its S1 filing.

1. A company that got its start 31 years ago to make drug testing for pharmaceutical  companies more efficient has grown from a modest five employees to a behemoth employing more than 27,000 in 100 offices in 60 countries and generated $4.8 billion in revenues last year. It also made $177.5 million in net income.  Although its CRO division generated 74 percent of its revenues, its integrated healthcare services was responsible for the rest. That division provides the sales workforce for its contract pharmaceutical sales and also provides healthcare services such as outcome-based and payer and provider services.

2. Of all the new molecular entities and new biologic applications approved between 2004 and 2011, it helped develop or commercialize 85 percent of central nervous system drugs, 76 percent of the oncology drugs and 72 percent of the cardiovascular drugs.

3. Total biopharmaceutical spending on drug development was $91 billion in 2011. Spending on clinical development, apart from preclinical development, was $48 billion. Clinical development spending outsourced to CROs in Phases I-IV trials in 2011 amounted to $16 billion. It projects that amount will grow to $22 billion by 2015. It expects outsourced clinical development to CROs to grow 5 percent to  8 percent annually over the next few years. In 2012, there were approximately 4,028 drugs in the Phase I-III pipeline, an increase of 18% since 2008.

4.  It currently has access to de-identified electronic health record data representing more than 40 million patients.

5. Quintiles sold its minority investment in Invida Pharmaceutical Holdings in 2011 for $103.6 million of net proceeds, resulting in a gain of $74.9 million. Quintiles had started Invida in 2005 with Asian pharmaceutical distribution firm The Zuellig Group and Asia investment company TLS Beta.

 

[Photo Credit: Pile of Money from Big Stock Photo]

 

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Stephanie Baum

By Stephanie Baum

Stephanie Baum is the East Coast Innovation Reporter for MedCityNews.com. She enjoys covering healthcare startups across health IT, drug development and medical devices and innovations deployed to improve medical care. She graduated from Franklin & Marshall College in Pennsylvania and has worked across radio, print and video. She's written for The Christian Science Monitor, Dow Jones & Co. and United Business Media.
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3 comments
Gil Roth
Gil Roth

I'm looking at the S1 doc, and it appears that revenues in 2012 were $3.7 billion, not $4.8 billion. Was that a typo or am I missing $1.1 billion in revenues somewhere?

StephLBaum
StephLBaum

@Gil Roth Hi Gil, I initially had $3.7 billion, but I went with the $4.8 billion listed for total revenues on p. 11.