Booming Cincinnati CRO Medpace Plans to Hire 650 New Employees
11/1/2016 6:20:58 AM
November 1, 2016
By Alex Keown, BioSpace.com Breaking News Staff
CINCINNATI – Two months after going public,
Medpace Holdings Inc. has big expansion plans that call for the hiring of 650 additional employees and retain more than 1,150 positions, the Cincinnati Business Courier reported this morning.
The contract research organization received a 2.5 percent tax credit from the Ohio Tax Authority worth approximately $13.1 million over 15 years that will provide the company with the funding to initiate the hiring, as well as the finances to make a $7 million capital investment, the Courier said. The tax authority approved the credit so the jobs and resources would remain in Ohio and not shift to another state. Cincinnati’s WCPO reported that Texas was wooing Medpace with its own incentive package. Medpace provides Phase I to IV clinical development services to the biotechnology, pharmaceutical and medical device industries.
With the tax credit, Medpace will add $35.7 million in new payroll, making the average salary about $55,000, according to reports. The deal requires the company to keep its existing workforce intact for the next 18 years, WCPO said. The new capital improvement project is expected to include expanding the company’s clinical trial business, as well as open a new logistics facility, the Courier said. Citing REDI Cincinnati, a regional economic development organization, the Courier said Medpace anticipates “significant growth” over the next five years. Medpace currently employs about 2,300 people in 35 different countries.
The tax credit news came two days ahead of Medpace’s plans to share its third quarter report on Nov. 3—it’s first such report since going public in August. The company is expected to post earnings of 34 cents per share and quarterly revenue of $91.44 million. Medpace posted revenue of $320 million in 2015. WCPO said the CRO told analysts on Wall Street that it has a backlog of orders valued at $460 million, which should ensure continued growth in the near future.
Shares of Medpace are currently trading this morning at $29.02. When the company announced its IPO in June, it was seeking to raise $150 million from stock sales. However, the IPO brought in approximately $173.6 million in proceeds, which the company said would go toward paying off some debt. In August, after the IPO was closed, Moody’s upgraded Medpace to a stable outlook. This morning, the stock is considered a “strong buy,” according to Nasdaq analysts’ recommendations, which is based on data provided by Zack’s Investment Research.
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