BUZZ-Concerns big pharma deals will hit research services firms overblown - RBC

By Kitco News / March 02, 2018 / www.kitco.com / Article Link

** Concerns that recent biotech deals will weigh on cos suchas Catalent Inc , Medidata Solutions Inc ,Charles River Laboratories and IQVIA Holdings that provide tech, research services to drugmakers areexaggerated - George Hill, market analyst at RBC Capital** Changes to U.S. tax law have spawned big deals amongbiotechs as large drugmakers snap up promising assets fromsmaller rivals to help revive growth** This has led to worries that pharma services companiesmay face pricing pressure

** Hill rates the clinical research outsourcing companies "sector perform" or higher** While shares of pharma services companies took a hitrelative to the S&P 500 Index immediately after majorbiopharma acquisitions, they quickly rebounded, Hill notes** However, these companies have well-diversified revenuestreams with little concentration in customers and acquiredcompanies are unlikely to switch services companies in themiddle of the drug development cycle due to high costs - Hill(Reporting by Tamara Mathias in Bengaluru)

8780, outside U.S. +91 806749 1208; Reuters Messaging:tamara.mathias.thomsonreuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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