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FOR IMMEDIATE RELEASE www.quintiles.com
CONTACT: Pat Grebe, Media Relations (pgrebe@quintiles.com)
Greg Connors, Investor Relations (invest@quintiles.com)
(919) 998 2000
QUINTILES TRANSNATIONAL REPORTS RECORD 1ST QUARTER RESULTS
WITH NET REVENUE OF $408 MILLION, UP 32% FROM 1998
DILUTED NET INCOME PER SHARE GROWS 36%, TO $0.31, EXCLUDING NON-RECURRING COSTS
RESEARCH TRIANGLE PARK, N.C. - April 21, 1999 - Quintiles Transnational Corp.
(Nasdaq: QTRN) today reported record financial results for the first quarter
1999. Net revenue for the quarter was $408.1 million, a 32% increase over net
revenue of $309.1 million for the first quarter 1998. Excluding amortization of
acquired intangible assets and transaction costs, net income grew 38% to $33.8
million versus $24.5 million for the 1998 first quarter, and diluted net income
per share grew 36% to $0.31 versus $0.23 for the same period in 1998. Including
amortization of acquired intangible assets and transaction costs, net income
was $7.7 million versus $18.9 million for the 1998 first quarter, and diluted
net income per share was $0.07 versus $0.17 for the same period in 1998. As of
March 31, 1999, these acquired intangible assets have been fully amortized.
First quarter 1998 results were restated for acquisitions completed during 1999
that were accounted for as poolings of interests.
"These superb results for the first quarter reflect Quintiles' strong
fundamentals and continued success in extending our market leadership," said
Dennis Gillings, Ph.D., Chairman and CEO of Quintiles Transnational Corp.
"Pharmaceutical industry leaders are increasingly using our outcome-based
approach to product development and commercialization as strategic tools to
achieve success in the global marketplace.
"Combining these recent acquisitions of ENVOY and Scott-Levin with our global
QUINTERNET(TM) technology platform, we now can provide our customers with
real-time information about what's happening in both the pharmaceutical and
medical sectors of the U.S. healthcare market. The speed at which we can
provide in-depth market intelligence - which we can deliver in hours instead of
weeks or months - offers a major strategic advantage in every phase of drug
development and marketing. Our QUINTERNET(TM) Informatics group, which includes
ENVOY and its Synergy Health Care group, plus Scott-Levin, is experiencing
great customer interest in its informatics products.
"Just last week, we introduced a new product comparing regional treatment
patterns to national benchmarks. We found, for example, that in one specific
market of interest to our customer, there was a much higher incidence of use of
one drug therapy than the national average among older patients with certain
medical conditions."
QUINTERNET(TM) Informatics already is working to maximize the performance of a
large Innovex sales force by providing strategic sales and marketing
intelligence for sales force
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optimization. QUINTERNET(TM) Informatics also is helping to expedite the
recruitment of investigators for late-phase clinical trials by identifying
doctors nationally who treat the greatest numbers of patients meeting tight
inclusion criteria.
In addition, the QUINTERNET(TM) Informatics group is providing daily-updated
sales data on a current product launch that includes prescriptions within 36
hours of the time they are filled. Launch data also includes the number of
patients starting a drug for the first time, the total number of patients using
the drug and the number of patients switching from one drug to another. These
patient trends are described without identifying any individual patients.
"This patient trend data is commercially very important," Gillings said,
"because it gives the customer an immediate understanding of whether market
growth is due to new or repeat business, and how customers gain and lose market
share. We are currently providing aggregate data to customers showing
pharmaceutical sales of competing products broken down by medical diagnosis,
age and gender. This gives customers a more timely, accurate picture of how
their drugs are being used.
"We also have recently provided surveillance of non-compliance with indicated
drug use in connection with a product experiencing significant adverse events,
as well as drug concomitancy profiles to show how often drugs are used together
by the same patient."
Quintiles Transnational Corp. is the market leader in providing a full range of
integrated product development and commercialization solutions to the
pharmaceutical, biotechnology and medical device industries. Quintiles also is
a leader in the electronic data interchange and healthcare informatics industry
and provides healthcare policy consulting to governments and other
organizations worldwide.
Headquartered near Research Triangle Park, North Carolina, Quintiles is a
Fortune 1000 company and a member of the Nasdaq-100 Index. With more than
16,000 employees worldwide and offices in 31 countries, Quintiles operates
through specialized work groups dedicated to meeting customers' individual
needs. Visit the Quintiles Transnational web site at www.quintiles.com.
Information in this press release contains "forward-looking statements." These
statements involve risks and uncertainties that could cause actual results to
differ materially, including without limitation, the ability of the recently
combined businesses to be integrated with Quintiles' current operations, actual
operating performance, the ability to operate successfully in the lines of
business resulting from the ENVOY and Scott-Levin transactions, the ability to
maintain large client contracts or to enter into new contracts, and the actual
costs of combining the businesses. 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 S-3
and S-4 Registration Statements, its Annual Report on Form 10-K, its Form 8-Ks,
and its other periodic reports, including Form 10-Qs.
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Condensed Consolidated Statements of Income
(Unaudited)
Proforma**
---------------------------------
Three Months Ended March 31 Three Months Ended March 31
1999 1998* 1999 1998*
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In thousands, except per share data
Net revenue 408,098 309,068 408,098 309,068
Costs and expenses:
Direct 210,466 160,851 210,466 160,851
General and administrative 123,493 95,367 123,493 95,367
Depreciation and amortization 25,129 21,879 21,408 16,814
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Total costs and expenses 359,088 278,097 355,367 273,032
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Income from operations 49,010 30,971 52,731 36,036
Transaction costs (22,363) (532) 0 0
Other income (expense) 426 (290) 426 (290)
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Total other income (expense) (21,937) (822) 426 (290)
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Income before income taxes 27,073 30,149 53,157 35,746
Income taxes 19,370 11,277 19,370 11,277
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Net income $7,703 $18,872 $33,787 $24,469
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Basic net income per share $0.07 $0.19 $0.32 $0.24
Diluted net income per share $0.07 $0.17 $0.31 $0.23
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Shares used in computing net income per share
Basic 107,027 101,499 107,027 101,499
Diluted 109,729 108,219 109,729 108,219
* Restated to include ENVOY and Niehaus & Botha which were acquired in 1999
in transactions accounted for as poolings of interests
** Excludes transaction costs and amortization of acquired intangible assets
of $3.7 million and $5.1 million for the quarters ended March 31, 1999 and
1998, respectively. As of March 31, 1999, these acquired intangible assets
have been fully amortized.