PharmaNet Revenues Drop

Thursday, October 30, 2008 10:43 AM

PharmaNet Development is the latest contract research organization (CRO) to release disappointing quarterly earnings as a result of contract cancellations, slow sales and negative foreign exchange rates. Princeton, N.J.-based PharmaNet reported a decrease in direct revenue to $89.2 million, down $10 million, or 10.6%, from the same period last year. Almost $1.5 million of that drop was a result of foreign currency exchange translation.

Although PharmaNet’s early stage segment saw a 13.2% increase in direct revenues, revenues from the late stage segment fell 25% to $46.6 million due to contract cancellations and postponements. The company’s backlog was also down from $579.2 million in June to $521.6 million as of September 30.

In September, PharmaNet cut its full-year revenue forecast more than $30 million to the range of $358 million to $368 million. With the release of third quarter earnings, the company reiterated its September guidance.

PharmaNet’s shares have plunged since September, but in early morning trading Thursday, shares were up 24% to $1.55

Share:          
CWWeekly

April 13

Quintiles-Quest Diagnostics joint venture latest in CRO-central lab deals, more could be on horizon

Biotech companies raise record amount of capital in Q1

Already a subscriber?
Log in to your digital subscription.

Subscribe to CWWeekly.

The CenterWatch Monthly

April

PSI, INC Research, Chiltern best with sites
Strategic outsourcing prioritizing, improving site relationships

Regulatory compliance an increasing burden on sites
Increased staff time, materials, storage eroding site operating profit

Already a subscriber?
Log in to your digital subscription.

Purchase the March issue.

Subscribe to
The CenterWatch Monthly.

The CenterWatch Monthly

March

Novo Nordisk, Takeda, Servier, Celgene among top sponsors
New gains seen from patient- and site-centric initiatives

Patient reported outcomes take center stage
FDA combining PROs, clinical outcomes in its approval decisions

Already a subscriber?
Log in to your digital subscription.

Purchase the February issue.

Subscribe to
The CenterWatch Monthly.

JobWatch centerwatch.com/jobwatch

Featured Jobs