IQVIA Sees 'Meaningful' Tailwind From Accelerating New Drug Approvals, RBC Capital Markets Says

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IQVIA's (IQV) Commercial Solutions segment is expected to see a "meaningful" tailwind from 20 novel drug approvals in Q3, the highest single-quarter total since 2021, RBC Capital Markets said in a note Tuesday.

The 43 year-to-date drug approvals are expected to create a multiyear revenue tailwind, as about 50% of commercialization spend typically occurs in the first two years after approval and there is a three-to-six-month lag to revenue, the brokerage said.

The Commercial Solutions segment has met or surpassed analysts' consensus every quarter since the resegmentation, and is expected to benefit from a favorable year-over-year comparison for Q3, RBC said.

The company's Research & Development Solutions segment delivered in Q2 the highest net new bookings since 2022, as management said the demand environment was consistently improving.

RBC Capital Markets maintained its outperform rating on the stock and raised the price target to $319 from $247.

Price: 269.39, Change: -1.59, Percent Change: -0.58

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