Kendle International posted a strong set of third quarter results with a whopping 46% increase in net services revenue to $75 million, although 22% of that increase came from its $215 million acquisition of Charles River Laboratories’ Phase II-IV business, which completed in August.
Net income climbed 18% to $4 million, held back by the costs of integrating the new business as well as the debt burden Kendle shouldered in order to fund the acquisition.
“We are very pleased with the pace at which the integration is progressing and believe we are well-positioned to meet the increasing needs of our customers for large global programs across all therapeutic areas and geographic regions," said chief executive Candace Kendle.
The acquisition - part of a stated ambition by Kendle to grow by buying complementary businesses, elevated the company to fourth place in the Phase II-IV segment, with 8% market share worldwide and even more in selected countries, according to figures supplied by UBS Securities. The other major players in this space are Quintiles, Covance and PPD.
Kendle is banking on the expansion in Phase II-IV to help its business pass the $500 million revenue threshold and make it a player in the market for large-scale, multinational studies.
Kendle also noted that new business awards were a record $148 million for third quarter 2006, an increase of 76% over new business awards in the second quarter.