IQVIA (IQV) UBS Global Healthcare Conference 2024 summary

Q3 performance and TAS business trends

• Q3 financials exceeded expectations, with revenue above the high end of guidance, driven by Tech and Analytic Solutions (TAS).

• TAS saw over 8% revenue growth, with strong organic and acquisition-driven gains, and the recovery is expected to continue into Q4.

• Margin expanded by 30 basis points, EPS grew over 14%, and cash flow was strong at 109% of adjusted net income.

• Real-world evidence business outperformed, growing low double digits, while analytics and consulting returned to growth.

• Transition to a new Salesforce-based CRM platform is expected to be gradual, with no negative impact on current tech business growth.

R&DS business and bookings environment

• R&DS had a choppy quarter due to a $350 million trial cancellation and delays in two mega trials, impacting Q4 revenue guidance.

• Book to bill ratio dropped to 1.06, the lowest since Q1 2019, but would have been 1.22 excluding the large cancellation.

• Delayed trials are expected to result in stronger R&DS growth in the second half of 2025.

• Industry-wide portfolio reevaluations are causing near-term churn and reduced opportunities, but backlog and pipeline remain healthy.

• Elevated cancellations are expected to persist in Q4, with cancellations likely to double the normal level, creating a headwind for bookings.

Market dynamics and strategic partnerships

• Pharma discretionary spending slowed post-COVID, influenced by lower revenues, interest rates, and the IRA, but pent-up demand remains.

• Pricing environment has tightened, especially in the FSP segment, but overall margins have remained stable over time.

• Strategic partnership reevaluations by clients have generally resulted in maintained or expanded positions, benefiting share of wallet.

• Biotech funding has increased significantly in 2024, but demand for CRO services typically lags funding by 12–18 months.