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QuintilesIMS unit sale draws PE interest; earnings beat Street

QuintilesIMS

Aug, 3 2017, 9:23 AM

QuintilesIMS is shopping its contract sales business and is drawing a number of potential bidders, according to a news report. Meanwhile, the life science giant reports earnings that top Wall Street expectations.

Private Equity Hub reports that the private equity segment is "deemed more likely suitor" for the QuintilesIMS group in what the news service says is an "auction" being conducted by Wall Street's Goldman Sachs.

Reporter Sarah Pringle says that "a few PE firms and strategics" have participated in the potential sales process.

She describes the interested firms as a "limited group," citing three unnamed sources.

The QuintilesIMS group is responsible for between $60 million and $65 million in revenue.

Reuters reported in June that QuintilesIMS was looking to sell the group.

Earnings report: Revenues up slightly

Meanwhile, early Thursday QuintilesIMS reported quarterly earnings of $1.09 per share for the second quarter.

That was 4 cents higher than Wall Street analysts had told Zachs Research.

Revenue increased just over 1 percent year-over-year on a constant currency basis to just under $1.97 billion.

Quintiles and IMS merged last October. The company reported its financials as if the merger had taken effect on Jan. 1, 2016.

“We continue to consistently meet or exceed financial targets,” said Ari Bousbib, chairman and CEO of QuintilesIMS, in a statement. “Execution of our integration plans is progressing well. The continued development of our Next-Gen offering, combined with strengthened operational discipline, position us well for accelerated growth and margin expansion in 2018 and beyond.”

In April, QuintilesIMS and Salesforce for a sales alliance focusing on taking new drug molecules to market.

QuintilesIMS maintains dual headquarters in Durham and Danbury, Conn.

Read more about the PE Hub report at:

https://www.pehub.com/buyouts/quintiles-contract-sales-operations-may-be-a-better-fit-for-pe/

(Subscription required)

Read the full earnings report at:

https://finance.yahoo.com/news/quintilesims-reports-second-quarter-2017-110000842.html





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