MORRISVILLE – Syneos Health is making a lot of news today with its financial report topping Wall Street expectations and Wednesday evening’s announcement that it is acquiring Synteract, which also has an operation in Morrisville.

First, the financials.

Syneos (Nasdaq: SYNH) this morning reported third-quarter net income of $63.4 million.

The Morrisville-based company said it had net income of 60 cents per share. Earnings, adjusted for one-time gains and costs, came to $1.04 per share.

Syneos

The results beat Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 90 cents per share.

“We delivered strong sequential revenue growth with profit outperformance in the third quarter. Our differentiated model continues to resonate with customers and our value proposition is further strengthened with our agreement to acquire Synteract,” said Alistair Macdonald, Chief Executive Officer of Syneos, in a statement.

“As we look ahead to 2021 and beyond, we’re building a strong foundation for growth, coming off a quarter with record backlog, high market demand and robust pipelines. We’re also particularly proud of our recent selection to the Forbes 2020 list of World’s Best Employers, a testimony to the strength of our collaborative culture and this team’s resilience during the pandemic.”

The clinical research company posted revenue of $1.1 billion in the period, which fell short of Street forecasts. Six analysts surveyed by Zacks expected $1.12 billion.

Syneos Health expects full-year earnings in the range of $3.33 to $3.46 per share, with revenue in the range of $4.37 billion to $4.44 billion.

Syneos Health shares have dropped 10% since the beginning of the year. The stock has decreased nearly 1% in the last 12 months.

The Synteract deal

Synteract, also a clinical research firm, has some 700 employees worldwide. Its headquarters is located in California.

“Synteract will maintain its brand, led by strong management, operating as a Syneos Health Business Unit,” Syneos said in the announcement.

Financial terms were not disclosed.

Synteract focuse on oncology, rare and orphan diseases, neuroscience, dermatology, and pediatrics, according to the companies.

“Synteract is one of the leading mid-sized, late-stage-focused CRO platforms with global reach and an attractive focus on the highest growth customer segment in the CRO space fueled by near-record funding levels,” Macdonald said.

“With Synteract, we will strengthen our leadership across the entire SMID category while we continue to drive growth among large biopharma customers. Importantly, we share operating and cultural philosophies built around finding the best combination of product, process and technology to fuel innovation. I look forward to welcoming Synteract to the Syneos Health family, as we collectively work to change patients’ lives.”

The deal is expected to close before the end of the year.

“Joining Syneos Health combines our emerging biopharma expertise and expands our differentiated delivery model,” said Synteract CEO Steve Powell.

“We are excited to join the Syneos Health team, as they provide increased global scale, service breadth and the technology infrastructure that will drive continued growth. On behalf of our management team, I thank our dedicated employees and customers who have made this combination possible, as well as Amulet Capital Partners for their significant support as an investor over the last several years.”