This story about INC Research's plans to go public incorrectly identified another Raleigh-based contract research organization as PRA Health Service. The correct name is PRA Health Sciences.
Raleigh-based pharmaceutical services company INC Research, which has 5,400 employees in 50 countries worldwide, is hoping to raise as much as $150 million with an initial public offering of common stock.
The company, which filed its plans with the Securities and Exchange Commission after the markets closed Monday, generated $652.4 million in revenue last year but has been losing money in recent years – including $41.5 million in 2013. However, during the first six months of this year it turned the corner and posted net income of $13.5 million; revenue, meanwhile, rose 26 percent in the first half of the year.
INC is a contract research organization, or CRO, that helps pharmaceutical and biotechnology companies test experimental drugs. It had 863 employees in the Triangle at the end of August.
Not only is the Triangle the epicenter of the worldwide CRO industry, but INC is the second local CRO to file IPO plans within the past month. PRA Health Sciences, a substantially larger CRO also based in Raleigh, has filed plans to raise as much $375 million by going public. Moreover, last year Durham-based Quintiles, by far the largest CRO, went public as well.
Investors are looking favorably on CROs because drug companies are seeking to save money by outsourcing their clinical trial work at the same time they are spending more on research and development. Quintiles’ shares have risen 20 percent this year.
INC plans to use the proceeds it would raise from an IPO to pay down its debt, which stood at $592.5 million as of June 30.
INC said the number of shares it will sell to the public, and at what price, hasn’t yet been determined.
Citing SEC restrictions on what companies planning an IPO can say publicly, INC said it wouldn’t expand on its filing.
Founded more than two decades ago, INC is led by CEO Jamie Macdonald, 46. He joined the company as chief operating officer in 2011 when it acquired Kendle, a publicly traded CRO based in Cincinnati, for $232 million in cash.
Before joining Kendle, Macdonald had a number of executive positions at Quintiles, including senior vice president and head of global project management.
Macdonald’s compensation package totaled $2.8 million last year.
If INC succeeds in going public its shares likely would be sold on the Nasdaq market under the ticker symbol “INCR.”