IQVIA (IQV) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Key accomplishments and business performance

• Achieved recovery in TAS segment after a weak start, with confidence in meeting year-end guidance.

• R&DS segment maintained strong performance, with backlog up 8% and next twelve months revenue up 7%.

• Cash flow remained strong, aided by disciplined capital spending and effective collections.

• Interest expense and depreciation have stabilized, supporting a return to double-digit EPS growth.

• No significant regrets or missed opportunities noted for the year.

Industry trends and customer dynamics

• Pharma customers are reprioritizing pipelines due to IRA, but changes have not been dramatic.

• Emerging biopharma funding was robust, matching all of last year's total in the first half.

• Large pharma R&D spending increased 4.5% in the first half, showing continued industry investment.

• Cancellations in R&D were driven by trial data, not reprioritization, and remain within normal fluctuation.

Pricing, margins, and competitive landscape

• Pricing pressure observed mainly among mid-sized CROs and in FSP, but overall margins have held up.

• Book and realized margins remain stable, with realized margins typically 100–200 bps higher.

• TAS pricing is more competitive due to post-COVID budget scrutiny, but cost controls support margin expansion.