Revenues for contract research organization (CRO) MDS Pharma Services continue to fall as a result of client delays in late-stage research and decreased activity in preclinical and bioanalytical services.
First quarter net revenues for the CRO, a subsidiary of MDS, were down 12% from Q1 last year to $106 million. New business wins for Pharma Services also were down significantly over last year. New business wins for the first quarter 2009 were $104 million, down 41% from $177 million in the same period of 2008. MDS attributed this decline to “soft late-stage orders as customers continue to delay awards while reprioritizing their research and development projects.”
The CRO reported adjusted EBITDA of $8 million, up from $6 million last year, as a result of productivity gains from restructuring actions initiated in 2008.