Baird says CROs to benefit as biotech funding 'fog' lifts

Medpace Holdings

14/03/2022 11:37

** Contract research organizations can achieve healthy
guidance in 2022, Baird says, as the "fog" from biotech funding
weakness and trial impact from Russia's invasion of Ukraine
settles 
    ** CROs are being punished more in Russia and Ukraine, more 
   than many companies in other industries, including those with
similar or more direct revenue exposure, shuttered retail stores
or manufacturing facilities - brokerage
    ** Brokerage says hard to see confidence returning in sector
    for a few months as concerns around labor and commodity
shortages remain 
    ** For CROs, such as Icon Plc  ICLR.O , Syneos Health
 SYNH.O  and IQVIA Holdings  IQV.N , activity halted in Russia
and Ukraine will likely be recaptured in other locations after
temporary disruptions
    ** Strong U.S. dollar will add about 0.3%-0.8% revenue
headwinds, while profit will be neutral to forex benefits for
CROs - Baird
    ** Says coverage and private company channel checks suggest
consistently strong demand for Medpace Holdings  MEDP.O , even
though its client exposure continues to be a challenge 
    ** Up to Friday's close, MEDP, ICLR, SYNH and IQV down
35.1%, 27.7%, 26.7% and 24.3% YTD, respectively, vs a 24.4% fall
in SPDR S&P Biotech ETF  XBI.P  

 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))