IQVIA Holdings Inc. (“IQVIA”) (NYSE:IQV), a leading global
provider of advanced analytics, technology solutions, and clinical
research services to the life sciences industry, today announced
the acquisition of the 40 percent minority share of Q2 Solutions
from Quest Diagnostics (NYSE: DGX), the world leader in diagnostic
information services, for $760 million, resulting in 100 percent
ownership by IQVIA. The transaction has been financed through cash
on hand and is not expected to impact IQVIA’s target net leverage
ratio.
Q2 Solutions is a leading global clinical laboratory services
organization that provides comprehensive testing, project
management, supply chain, biorepository and biospecimen and consent
tracking solutions for clinical trials. Established as a joint
venture in 2015, IQVIA previously owned a 60 percent majority share
and Quest Diagnostics owned a 40 percent minority share.
Quest will remain the strategic preferred laboratory provider
for Q2 Solutions clients under a multi-year agreement to provide a
range of complementary lab testing capabilities to augment Q2
Solutions’ core offerings, extending its industry leading suite of
services.
The transaction is expected to be approximately $0.12 accretive
to IQVIA’s 2021 Adjusted Diluted EPS and at least $0.18 accretive
to 2022 Adjusted Diluted EPS. As a result, IQVIA is raising its
full-year 2021 Adjusted Diluted EPS guidance as follows:
($)
Updated
Prior(1)
Adjusted Diluted EPS
$7.89 - $8.20
$7.77 - $8.08
Growth (VPY%)
22.9% - 27.7%
21.0% - 25.9%
(1) Provided on Q4 2020 earnings call on
February 10, 2021
As IQVIA previously owned the majority share of the joint
venture, it has consolidated 100 percent of Q2 Solutions’ revenue
and Adjusted EBITDA into its reported financial statements. As a
result, the acquisition of Quest's 40 percent interest will not
impact IQVIA’s revenue and Adjusted EBITDA.
About IQVIA
IQVIA (NYSE:IQV) is a leading global provider of advanced
analytics, technology solutions, and clinical research services to
the life sciences industry. IQVIA creates intelligent connections
across all aspects of healthcare through its analytics,
transformative technology, big data resources and extensive domain
expertise. IQVIA Connected Intelligence™ delivers powerful insights
with speed and agility — enabling customers to accelerate the
clinical development and commercialization of innovative medical
treatments that improve healthcare outcomes for patients. With
approximately 70,000 employees, IQVIA conducts operations in more
than 100 countries.
IQVIA is a global leader in protecting individual patient
privacy. The company uses a wide variety of privacy-enhancing
technologies and safeguards to protect individual privacy while
generating and analysing information on a scale that helps
healthcare stakeholders identify disease patterns and correlate
with the precise treatment path and therapy needed for better
outcomes. IQVIA’s insights and execution capabilities help biotech,
medical device and pharmaceutical companies, medical researchers,
government agencies, payers and other healthcare stakeholders tap
into a deeper understanding of diseases, human behaviour and
scientific advances, in an effort to advance their path toward
cures. To learn more, visit www.iqvia.com.
Cautionary Statements Regarding Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the federal securities laws, including Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, without
limitation, our full-year 2021 Adjusted Diluted EPS guidance, 2022
Adjusted Diluted EPS guidance and Net Leverage Ratio. In this
context, forward-looking statements often address expected future
business and financial performance and financial condition, and
often contain words such as “expect,” “assume,” “anticipate,”
“intend,” “plan,” “forecast,” “believe,” “seek,” “see,” “will,”
“would,” “target,” similar expressions, and variations or negatives
of these words. Actual results may differ materially from our
expectations due to a number of factors, including, but not limited
to, the following: business disruptions caused by natural
disasters, pandemics such as the COVID-19 (coronavirus) outbreak
and the public health policy responses to the outbreak,
international conflicts or other disruptions outside of our
control; our ability to accurately model or forecast the impact of
the spread and/or containment of COVID-19, among other sources of
business interruption, on our operations and financial results;
most of our contracts may be terminated on short notice, and we may
lose or experience delays with large client contracts or be unable
to enter into new contracts; the market for our services may not
grow as we expect; we may be unable to successfully develop and
market new services or enter new markets; imposition of
restrictions on our use of data by data suppliers or their refusal
to license data to us; any failure by us to comply with
contractual, regulatory or ethical requirements under our
contracts, including current or changes to data protection and
privacy laws; breaches or misuse of our or our outsourcing
partners’ security or communications systems; failure to meet our
productivity or business transformation objectives; failure to
successfully invest in growth opportunities; our ability to protect
our intellectual property rights and our susceptibility to claims
by others that we are infringing on their intellectual property
rights; the expiration or inability to acquire third party licenses
for technology or intellectual property; any failure by us to
accurately and timely price and formulate cost estimates for
contracts, or to document change orders; hardware and software
failures, delays in the operation of our computer and
communications systems or the failure to implement system
enhancements; the rate at which our backlog converts to revenue;
our ability to acquire, develop and implement technology necessary
for our business; consolidation in the industries in which our
clients operate; risks related to client or therapeutic
concentration; government regulators or our customers may limit the
scope of prescription or withdraw products from the market, and
government regulators may impose new regulatory requirements or may
adopt new regulations affecting the biopharmaceutical industry; the
risks associated with operating on a global basis, including
currency or exchange rate fluctuations and legal compliance,
including anti-corruption laws; risks related to changes in
accounting standards; general economic conditions in the markets in
which we operate, including financial market conditions and risks
related to sales to government entities; the impact of changes in
tax laws and regulations; our ability to successfully integrate,
and achieve expected benefits from, our acquired businesses; and
risks and uncertainty associated with providing guidance and
forecasts earlier than is our customary practice. For a further
discussion of the risks relating to the combined company’s
business, see the “Risk Factors” in our annual report on Form 10-K
for the fiscal year ended December 31, 2020, filed with the SEC, as
such factors may be amended or updated from time to time in our
subsequent periodic and other filings with the SEC, which are
accessible on the SEC’s website at www.sec.gov. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release and in our filings with the SEC. We assume no
obligation to update any such forward-looking statement after the
date of this release, whether as a result of new information,
future developments or otherwise.
Note on Non-GAAP Financial Measures
Non-GAAP results, such as Adjusted EBITDA, and Adjusted Diluted
EPS are presented only as a supplement to the company’s financial
statements based on GAAP. Non-GAAP financial information is
provided to enhance understanding of the company’s financial
performance, but none of these non-GAAP financial measures are
recognized terms under GAAP, and non-GAAP measures should not be
considered in isolation from, or as a substitute analysis for, the
company’s results of operations as determined in accordance with
GAAP. The company uses non-GAAP measures in its operational and
financial decision making, and believes that it is useful to
exclude certain items in order to focus on what it regards to be a
more meaningful indicator of the underlying operating performance
of the business. As a result, internal management reports feature
non-GAAP measures which are also used to prepare strategic plans
and annual budgets and review management compensation. The company
also believes that investors may find non-GAAP financial measures
useful for the same reasons, although investors are cautioned that
non-GAAP financial measures are not a substitute for GAAP
disclosures.
Our full-year 2021 Adjusted EPS guidance measure is provided on
a non-GAAP basis because the company is unable to reasonably
predict certain items contained in the GAAP measure. Such items
include, but are not limited to, acquisition and integration
related expenses, restructuring and related charges, stock-based
compensation and other items not reflective of the company's
ongoing operations.
Non-GAAP measures are frequently used by securities analysts,
investors and other interested parties in their evaluation of
companies comparable to the company, many of which present non-GAAP
measures when reporting their results. Non-GAAP measures have
limitations as an analytical tool. They are not presentations made
in accordance with GAAP, are not measures of financial condition or
liquidity and should not be considered as an alternative to profit
or loss for the period determined in accordance with GAAP or
operating cash flows determined in accordance with GAAP. Non-GAAP
measures are not necessarily comparable to similarly titled
measures used by other companies. As a result, you should not
consider such performance measures in isolation from, or as a
substitute analysis for, the company’s results of operations as
determined in accordance with GAAP.
IQVIAFIN
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version on businesswire.com: https://www.businesswire.com/news/home/20210401005191/en/
Andrew Markwick, IQVIA Investor Relations
(andrew.markwick@iqvia.com) +1.973.257.7144
Tor Constantino, IQVIA Media Relations
(tor.constantino@iqvia.com) +1.484.567.6732
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