Baird sees growth for contract drug researchers after beat-and-raise year

Syneos Health

15/12/2021 11:56

** Baird says early signs regarding the performance of
contract research organizations (CROs) are positive given their
overall beat-and-growth this year, as well as guidance raise,
despite headwinds such as labor/wage pressure
    ** Baird analyst Eric Coldwell says he is positive about a
sequential acceleration in biotech funding in November after
many months of declines
    ** IQVIA Holdings Inc  IQV.N  has the most exposure to
COVID-19 related revenue and likely faces the biggest headwind
in clinical next year, despite insulation from its other
businesse s- Baird 
    ** ICON public ltd co  ICLR.O  has the second-most exposure,
the brokerage says, adding that the clinical exposure of
Laboratory Corporation of America Holdings  LH.N , Medpace
Holdings Inc  MEDP  and Syneos Health Inc   SYNH.O  is much less
due to no material involvement in mega vaccine trials
    ** "SYNH remains our top clinical CRO idea due to the
discount to peers, minimal COVID-19 exposure, commercial
momentum, and an overhang lifted after news it is not involved
in a spin or sale of LH's CRO business" - Baird 
    ** SYNH up 45.35% this year, LH up 44.76%, MEDP up 45.47%,
ICLR up 40.93%, IQV up 46.64%, as of last close

    

 (Reporting by Oishee Majumdar in Bengaluru)
 ((oishee.majumdar@thomsonreuters.com;))