(Reuters) – IQVIA Holdings cut its full-year profit forecast on Wednesday, citing weakness in demand for its analytics and medical technology solutions along with the impact of a stronger U.S. dollar.
Shares of the contract research company fell 6% in premarket trading.
Durham, North Carolina-based IQVIA said its biotech clients continue to remain cautious about their spending on analytical services as high borrowing costs and an uncertain economic environment dent new clinical developments in the sector.
The technological & analytical solutions segment- IQVIA’s second largest – reported a revenue of $1.43 billion, below analysts’ average estimate of $1.48 billion, according to LSEG data.
IQVIA’s concerns about client spending echo those raised by larger rivals Thermo Fisher and Danaher Corp, which also cut their annual sales forecasts recently.
Thermo Fisher signaled that the demand slump from biotech clients for its contract research services could extend into the next year due to rising interest rates and a persistent funding crunch.
Revenue from IQVIA’s research and development solutions unit, through which it provides clinical trial and related services, was $2.12 billion, compared with analysts’ expectations of $2.13 billion.
On an adjusted basis, IQVIA reported a profit of $2.49 per share for the third quarter, topping estimates of $2.44 per share.
The company now expects full-year adjusted profit to be between $10.16 and $10.23 per share, compared with its prior forecast of $10.20 to $10.45.
IQVIA now expects 2023 revenue between $14.89 billion and $14.92 billion, compared with its previous forecast of $15.05 billion to $15.18 billion.
(This story has been corrected to fix the prior EPS forecast range in paragraph 9)
(Reporting by Christy Santhosh in Bengaluru; Editing by Shweta Agarwal)
