(Reuters) -IQVIA Holdings on Tuesday narrowed its annual profit forecast, trimming the upper end of its outlook, as it expects cancellations of research contracts from pharmaceutical clients to persist into the second half of this year.
Drugmakers and biotech companies have been cancelling orders given to contract research firms in response to the President Trump administration’s drug price negotiation program, proposed federal research budget cuts and tariffs.
IQVIA now expects annual adjusted profit per share between $11.85 and $11.95, compared with an earlier forecast of between $11.75 and $12.05.
The Durham, North Carolina-based company forecast its annual revenue to be between $16.15 billion and $16.25 billion, compared with its prior range of $16.1 billion and $16.3 billion.
The company reported quarterly sales at its technology and analytics unit was $1.63 billion, missing analysts’ estimates of $1.66 billion, according to data compiled by LSEG.
“TAS (unit) delivered solid results despite a tougher year-over-year comparison, driven by ongoing momentum from drug launches and the strength of our broader commercial portfolio,” said CEO Ari Bousbib.
Quarterly sales at its research and development solutions unit was $2.26 billion, above expectations of $2.23 billion.
“Given the recent uptick in the stock, we aren’t sure if the implied bar had become higher where a small beat and guidance tightening is enough today, but we certainly see encouraging signs of improving R&DS trends, while TAS is more a matter of comparables vs. a demand slowdown,” Leerink Partners analyst Michael Cherny said.
The stock has gained over 10% year-to-date.
IQVIA’s total quarterly revenue rose 5.2% year-on-year to $4.1 billion, beating analysts’ average estimate of $4.08 billion.
On an adjusted basis, it reported a profit of $3 per share for the quarter ending September 30, above expectations of $2.97 per share.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Vijay Kishore)
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