IQVIA cuts annual profit forecast on soft demand for healthcare tech services
(Reuters) - Contract research firm IQVIA Holdings cut its annual profit and revenue forecasts on Tuesday, on expectations of slower demand from clients for its healthcare data and analytics services.
Its Technology & Analytics Solutions unit, IQVIA's second largest, through which it provides services such as information on drug prescription trends and data and tech-based services for drug trials, brought in revenue of $1.46 billion, below estimates of $1.47 billion.
"Clients on the commercial side remain cautious and spending has not accelerated yet", said CEO Ari Bousbib.
The Durham, North Carolina-based company now expects full-year adjusted profit to be between $10.20 and $10.45 per share, cut from its per share prior forecast of $10.26 to $10.56.
Analysts were expecting annual profit of $10.39 per share, according to Refinitiv.
IQVIA expects its 2023 revenue to grow between 8% to 9%, lower than its prior outlook of between 9% to 11% growth.
The company, however, reported better-than-expected second-quarter profit and revenue, on the back of strong demand for its drug research and development services.
IQVIA's revenue for its research and development solutions unit, which helps run clinical trials for companies, rose 7.7% to $2.10 billion, beating analysts' expectations of $2.07 billion.
It reported revenue of $3.73 billion for the quarter ended June 30, slightly above analysts' average estimate of $3.71 billion. Excluding one-off items, IQVIA reported a profit of $2.43 per share for the second quarter, above analysts' average estimate of $2.37 per share.
(Reporting by Pratik Jain in Bengaluru; Editing by Krishna Chandra Eluri)
