Fourth consecutive half-year increase in total net new business wins.
RESEARCH TRIANGLE PARK, N.C. – August 13, 2004 – Quintiles Transnational Corp. today announced financial results for the quarter ended June 30, 2004 . Net revenue for second quarter 2004 was $425.8 million versus $408.4 million for the same period in 2003. Net loss for second quarter 2004 was $10.1 million, reflecting increased costs and expenses from project startups.
For the first half of 2004, net new business totaled an estimated $954.5 million, a 31% increase from the $727.3 million in net new business reported for the same period in 2003. Total backlog as of June 30, 2004, was approximately $2.2 billion.
"We continue to perform strongly in winning new business – almost a billion dollars in the first six months of the year," said Quintiles Transnational Chairman and Chief Executive Officer Dennis Gillings, Ph.D. "This is our fourth consecutive half-year increase in net new business and further evidence of the high-quality work we do for customers and our increased business development efforts."
Quintiles Transnational Executive Vice President and Chief Financial Officer John Ratliff said: "In addition to new business wins, we are pleased with our sequential quarterly growth in service revenue. Our plans now are to build on these strengths while focusing on increasing margins."
During second quarter 2004, Quintiles and Mitsui & Co. completed a previously announced transaction whereby Mitsui become a 20% shareholder in Quintiles Transnational Japan K.K. Quintiles and Quintiles Japan received a total of approximately 8.7 billion yen (approximately $79.9 million) in cash from Mitsui in the transaction, with Quintiles having the ability to receive up to an additional 2.0 billion yen (approximately $18.5 million) based on Quintiles Japan's future financial performance. As a result of the Mitsui transaction, Quintiles recognized a pre-tax gain of $34.7 million during the quarter.
Earlier this week, Quintiles and Bradley Pharmaceuticals, Inc. (NYSE: BDY) completed the previously announced sale of certain assets relating to its Bioglan Pharmaceuticals subsidiary to Bradley for $188.3 million in cash, including approximately $5.4 million of direct costs for transferred inventory. During the quarter, Bioglan was classified as a discontinued operation.
"The closings of the Mitsui and Bioglan transactions further bolster our already strong cash position," Ratliff said. As of June 30, 2004, prior to the closing of the Bioglan transaction, Quintiles had cash, cash equivalents, marketable securities and debt investments valued at $421.2 million.
Quintiles Transnational's second quarter 2004 financial briefing will be held at 9:00 a.m. EDT on Monday, Aug. 16, and will be broadcast live over the Web. The webcast or replay, which will be available through 5:00 p.m. EDT Aug. 27, can be accessed at www.quintiles.com/corporate_info/broadcast_center.
Quintiles helps improve healthcare worldwide by providing a broad range of professional services, information and partnering solutions to the pharmaceutical, biotechnology and healthcare industries. Headquartered near Research Triangle Park, North Carolina, Quintiles has offices in 50 countries and is the world's leading pharmaceutical services organization. For more information visit the company's Web site at www.quintiles.com.
The schedules attached to this release are an integral part of this release. Information in this press release contains "forward looking statements" about Quintiles. These statements involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, the ability to maintain large customer contracts or to enter into new contracts, changes in trends in the pharmaceutical industry, the risk that the market for our products and services will not grow as we expect, the risk that our PharmaBio transactions will not generate revenue or profit at the rate or levels we anticipate or that royalty revenues under the PharmaBio agreements may not be adequate to offset Quintiles' upfront and ongoing expenses in providing sales and marketing services or in making milestone and marketing payments, our ability to fulfill our obligations under our financing arrangements and the potential impact on our operations, our ability to efficiently distribute backlog among project management groups and match demand to resources, actual operating performance, variation in the actual savings and operating improvements resulting from previous restructurings, and the ability to operate successfully in new lines of business. Additional factors that could cause actual results to differ materially are discussed in the company's recent filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K, its Form 8-Ks, and its other periodic reports, including Form 10-Qs.