BioClinica accelerates spending to support eClinical surge
By Nick Taylor
BioClinica ($BIOC) is increasing its investment in infrastructure to handle an expected surge in demand for its eClinical suite. The investment--which will total $9 million in 2012--comes as BioClinica service revenues hit record highs in the second quarter.
A second successive quarter of double-digit service revenue growth pushed sales up to $19.1 million, a new record for the company. With conversations indicating continued strong growth is possible BioClinica is coughing up the cash to ready its infrastructure.
"This year we made the decision to accelerate some spending," chairman David Nowicki said in a BioClinica conference call to discuss results. BioClinica will use some of the cash to quadruple capacity at one of its sites while cutting maintenance costs by 10%.
BioClinica is also investing in its eClinical products. The fast growing Express EDC, Trident IWR and OnPoint CTMS are all in line for new functionalities as BioClinica works to make the systems more useful for clients and prospects.
Spending the cash should help BioClinica further its cross-selling strategy. Like its eClinical peer Medidata ($MDSO), BioClinica has made cross-selling a central element of its growth strategy. So far, things are going well.
"80% of our top 20 eClinical clients are using more than one of our solutions," BioClinica CEO Mark Weinstein said. Across all eClinical accounts the figure is 40% and BioClinica wants to push this number up to continue its double-digit growth.
The growth figures are vindication for Weinstein who was criticised for expanding into eClinical. In 2010 Nicusa Capital called for his resignation. Since then BioClinica stock has gone up more than 50% as eClinical demand has pushed service sales to new highs.
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