INC shares fall after it announces secondary stock offering

Shares of INC Research closed 4 percent lower Monday morning after the company announced the latest in a string of secondary stock offerings.

The Raleigh-based company’s two largest shareholders, private equity firm Avista Capital Partners and the Ontario Teachers’ Pension Plan, are selling a total of 5 million shares of common stock.

INC won’t receive any proceeds from the sale of the shares, which have not yet been priced.

Avista and Ontario together owned a controlling interest in INC when the company went public in November 2014, but their ownership stakes have been whittled down by past secondary offerings – in May, December and last August. After the latest offering, Avista will own 7.5 percent of INC’s outstanding shares and the pension plan will own 7.2 percent.

INC shares closed Monday at $42.76, down $1.75. Its shares have fallen 12 percent this year.

Last week, INC reported that its second-quarter net service revenue rose 13.8 percent to $258.8 million, and its adjusted net income totaled $34.3 million, up from $28.6 million a year ago. Those results were better than analysts expected.

INC also announced Thursday that CEO Jamie Macdonald, who has been CEO for the past four years, is stepping down as chief executive and will be succeeded by Alistair Macdonald. Alistair Macdonald, no relation, has been president and chief operating officer since January 2013.

Contract research organizations such as INC help pharmaceutical and biotechnology companies conduct clinical trials and analyze the results.

David Ranii: 919-829-4877, @dranii