Contract research firms fall as Baird raises funding concerns after SVB fallout

Medpace Holdings

15/03/2023 15:26

** Shares of contract research organizations (CRO) fall
after brokerage Baird raises growth concerns following SVB
Financial Group's  SIVB.O  fallout
    ** Shares of Charles River Laboratories  CRL.N , ICON Plc
 ICLR.O , IQVIA Holdings Inc  IQV.N , Medpace Holdings Inc
 MEDP.O , Syneos Health Inc  SYNH.O  down about 5% each after
Baird cuts PT for the companies by ~2%-14%
    ** Clinical CROs generally have 10%-15% exposure to
funding-sensitive clients, and SVB fallout will be another
wrinkle to biotechs' funding - brokerage
    ** "We are reducing 2024 sales growth rates for CROs by ~1%
to ~3%," says Baird
    ** Brokerage also expects the sector to face similar
challenges this year like in 2022 from lingering COVID issues,
small- and mid-cap clients, among others  

 (Reporting by Khushi Mandowara in Bengaluru)
 ((Khushi.Mandowara@thomsonreuters.com;))