On 14 January, Covance Inc., formerly known as Corning Pharmaceuticals Services, began its first day of regular way trading and President and Chief Executive Officer Christopher Kuebler expects the co…
On 14 January, Covance Inc., formerly known as Corning Pharmaceuticals Services, began its first day of regular way trading and President and Chief Executive Officer Christopher Kuebler expects the company to “fare very well” since its spin-off from Corning Inc. of the United States. Corning distributed one Covance share for every four Corning shares. Kuebler said Covance“s position as a provider of integrated product development services on a worldwide basis to the biotechnology, pharmaceutical and medical device industries will help it do well in the growing outsourcing business. Covance was part of Corning for 10 years, but Kuebler said the break from the parent company was necessary. Kuebler said Covance“s major business segments include pre-clinical testing, human clinical testing, pharmaceutical research packaging and biological manufacturing. Covance also provides some services such as health economics for managed care organisations, hospitals and health care provider networks, as well as early development and laboratory testing services to the chemical, agrochemical and food industries. He said the company works with hundreds of providers and the top 50 pharmaceutical companies are clients. Covance is looking at three or four approaches for growth, Kuebler said, including geographic expansion into Latin America. Covance reported net revenues of US$ 357 million and net income of US$ 25 million for the nine months ended 30 September 1996, compared with net revenues of US$ 303 million and net income US$ 18.5 million for the year-earlier period.