inVentiv Health Inc. F4Q08 and Full Year 2008 Earnings Call Transcript

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2009-02-26 09:52:11.0

Tags: Progression, Guidance, Call Transcript, Earnings, Caris & Co., Sales Strategy, Sales, Seeking Alpha, Inventiv Health Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Eugene Mannheimer with Auriga USA.

Eugene Mannheimer - Auriga USA

I have a question on the guidance. In terms of commercial services does your guidance contemplate any new sales team wins or wind downs in 2009?

Dave Bassin

Yes, our guidance does incorporate all of the conversations that we’re having with clients today that could result in up scopes or down sizes in the business and also incorporates the assumption of new business wins consistent with the success that we’ve had historically.

Eugene Mannheimer - Auriga USA

Okay, so there could be a combination of wins and losses as we navigate through ’09 basically?

Dave Bassin

Yes, which that is typical for our business.

Eugene Mannheimer - Auriga USA

Okay. Are you able to disclose the current number of reps that you have in your combined sales teams today?

Dave Bassin

We don’t disclose the number of reps. At this point, given the additional level of services we provide in our Commercial business, we don’t think that that is most representative of the financial performance for the business, so we do not disclose the reps.

Eugene Mannheimer - Auriga USA

Okay, so put another way; are you still comfortable with the notion that you have maybe 40% of the outsourced pharmaceutical market?

Dave Bassin

Yes that’s fair.

Operator

Your next question comes from Leo Carpio with Caris & Company.

Leo Carpio - Caris & Company

Regarding the first quarter ’09 guidance, it sounds like you’re embedding or reflecting continued softness in the Communications division. What color or granularity can you provide on that guidance?

Blane Walter

As we said a few weeks ago on our call, we expected a softer Q1 in part because of the spending delays that result from our clients taking more time to finalize their 2009 budget spend levels. We are seeing that in communications and we’re seeing it in some other areas, frankly, as clients have just taken more time and they’ve been cautious in their spending. We think it is going to be a soft Q1, but we expect rampant progression over the course of the year.

Leo Carpio - Caris & Company

Then speaking of a progression ramp, is it going to be a steady progression ramp or are we going to have kind of like a hockey puck affect, that is more weighted towards the second half of the year?

 

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