INC Research Holdings, Inc.
A class action lawsuit was filed against INC Research (INCR changed to SYNH on Jan. 8, 2018) and certain of its officers related to alleged violations of federal securities laws. INC, a clinical research company that provides Phase I-IV clinical development services to pharmaceutical, biotechnology, and medical device companies, announced on August 1, 2017, that it completed a merger with inVentiv Health, Inc. and represented that the merger “marks the beginning of an industry-changing company, purpose-built to achieve the singular goal of accelerating biopharmaceutical performance.”
The INC Research press release regarding the INC Research and inVentiv Health merger can be viewed by clicking INC Research & inVentiv Health Merger News.
On November 9, 2017, the first quarter after the merger, INC reported a net loss of $88.9 million, as well as an impairment charge to the INC Research trademark and intangible asset. According to INC Research:
For the three and nine months ended September 30, 2017, we generated a loss from operations of $88.9 million and $43.9 million, respectively, compared to income from operations of $39.4 million and $111.6 million for the three and nine months ended September 30, 2016, respectively. Our operating results for the three and nine months ended September 30, 2017 were impacted by (i) Merger-related transaction expenses of $84.3 million and $108.1 million, respectively, (ii) an impairment charge of $30.0 million recorded in the third quarter of 2017 with respect to the INC Research trademark and intangible asset, and (iii) an increase in amortization expense of $41.9 million in both periods due to the acquisition of intangible assets as a result of the Merger.
The INC Research/inVentiv Health press release regarding Q3 2017 results can be viewed by clicking INC Research_inVentiv Health Q3 2017 Results.
Reportedly, analysts noted that INC Research Holdings’ fourth quarter guidance was “worrisome” given the challenges that inVentiv’s business faced.
On this news, the stock price of INC Research fell $16.35 per share, or 28.4%, to close at $41.15 per share on November 9, 2017, on unusually heavy trading volume. Further, the share price of INC Research declined over the next three trading sessions, closing on November 14, 2017 at $34.35 per share, a total decline of $23.15 per share, or 40.3%.
What Can Investors Do?
If you purchased INC Research common stock between May 10, 2017 and November 9, 2017 and would like to speak privately with a securities attorney to contribute to or learn more about the investigation, please complete the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected] or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.