Kendle Service Revenue Jumps
Cincinnati-based CRO Kendle reported nearly a 60% jump in service revenue during the second quarter of 2007 compared with last year’s same period. The company had net revenue of $97.8 million for the quarter compared with $62.1 million in 2006. Kendle reported second quarter earnings per share of $.29 and total income from operations of $10.9 million.
Net income remained flat over last year, however, with $4.3 million reported in the second quarter of 2007 compared with $4.29 million during the same period in 2006.
In 2006, Kendle snatched up the clinical services business of pre-clinical research powerhouse Charles River Laboratories of Wilmington, Mass., for $215 million in cash. The relatively modest net profits for the second quarter were primarily due to interest the company paid on the debt—$4.3 million—it incurred with the financing the Charles River Clinical Services acquisition. In contrast, Kendle paid only $51,000 in interest expense during the same period last year.
“Kendle delivered a strong performance for the second quarter,” said chairman and chief executive officer, Candace Kendle, PharmD. “Revenues, backlog and new business awards were all record highs, demonstrating the continued strength of our growing global organization. Our ability to build strategic relationships is being increasingly recognized as a key differentiator, with Kendle recently being named the ‘Top CRO to Work With’ in the Thomson CenterWatch 2007 survey of U.S. investigative sites.”
Dr. Kendle continued, “Our completion of the recent convertible note offering further enhances our financial position. Kendle has never been stronger and we look forward to the remainder of 2007 with great confidence.”
Recenly Kendle closed a $200 million offering of convertible senior notes, which would become due in 2012. The notes would be converted into a combination of cash and common stock.