Published on 15 Mar 2023 on Zacks via Yahoo Finance

Syneos Health's (SYNH) Product Launch Aids, FX Woe Hurts

Syneos Health SYNH has been gaining from partnerships and a strong Clinical Solutions segment. However, the company operates in a strict regulatory environment, which is a concern. The stock carries a Zacks Rank #3 (Hold).

In the fourth quarter of 2022, Syneos Health’s Commercial Solutions revenue growth was strong, primarily driven by deployment solutions, including the contribution from its Syneos One portfolio. During the reported quarter, the company had a robust net new business, including reimbursable out-of-pocket expenses, which resulted in solid book-to-bill ratios of 0.4 times for Clinical Solutions. Strong solvency with a moderately leveraged balance sheet is another upside.

Syneos One coordinates integrated solutions across the entire clinical development and commercialization continuum. Its offerings provide a cost-effective option for divesting, out-licensing, or co-promoting assets for small to mid-sized customers. It also gives large biopharmaceutical customers an opportunity to decrease their fixed-cost infrastructure as well as offers an alternative approach to develop and promote their non-core assets.