INC Research: Getting through Clinical Trials

07/26/2016 8:00 am EST

Focus: STOCKS

James Oberweis

President, Oberweis Asset Management, Inc.

This featured small cap stock is a leading global healthcare contract research organization (CRO), exclusively focused on Phase I to Phase IV clinical development services, explains Jim Oberweis, Jr., money manager and editor of The Oberweis Report.

INC Research (INCR) provides its biopharma and medical device customers with highly differentiated therapeutic alignment and expertise.

INC has a particular strength in complex therapeutic areas, such as central nervous system, oncology and other complex diseases.

INC’s service offerings focus on optimizing the development of the commercial potential for its customers’ new biopharmaceutical compounds.

Its services also benefit clients by enhancing returns on their R&D investments, and reducing their overhead by offering an attractive variable cost alternative to fixed cost, in-house resources.

The company has approximately 6,400 employees in over 50 countries across six continents, and is able to provide clinical development services in over 110 countries.

This global footprint allows the company to offer its customers broad access to diverse markets and patient populations, local regulatory expertise and local market knowledge.

The market for CRO services for Phase II to Phase IV clinical development services is expected to grow at a rate of 7% to 8% annually through 2020, driven by a combination of increased development spend and further outsourcing penetration.

In the company’s latest reported first quarter, sales increased approximately 34% to $413.9 million from $308.9 million in the first quarter of last year.

INC Research reported earnings per share of $0.58 in the latest reported first quarter versus $.42 in the same quarter of last year.

Clients of Oberweis Asset Management own approximately 11,000 shares. These shares may be appropriate for risk oriented investors.

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By Jim Oberweis, Jr., Editor of The Oberweis Report

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