Syneos Health, Inc. (NASDAQ:SYNH) Q4 2022 Earnings Call Transcript

Page 10 of 13

Max Smock: Got it. Thank you for that. Just a quick one for me on Syneos One. I wanted to follow-up on your comment earlier this year about the more than 24 potential asset launches translating into, I think, you said, $2 billion in additional value if launched. Just wondering if you have ever kind of taken a stab at coming for the risk adjusted number for that $2 billion. That might be a little bit more practical for us to consider as we think about the Commercial revenue growth longer term here? Thank you.

Michelle Keefe: Yeah. So thanks for the question and the suggestion. We are consistently looking at how we can get better longer term visibility into which assets are going to come through the pipeline that are currently sitting in our Clinical business, right? So that we understand what percentage of them we actually think are going to become an opportunity for us to Commercialize. So there is still quite a large amount of assets under our leadership on the Clinical side that potentially will meet Commercial Solutions and so we feel really good that that’s going to continue to be an opportunity to feed the Commercial business. But I hear what you are saying, having better visibility into how much of that actually will impact Commercial, we are constantly looking at that.

I would shift to say a couple of things. We are starting to see some freight interest in Syneos One across the continuum of product development, right? So we are getting assets that are currently in Phase 3 that meet Commercialization. We just had one of our Commercial Syneos One customer award us a piece of business in Clinical in a different therapeutic area. So we are starting to see that. When we — no matter where we work with them along the line, it’s not particular to that one asset. We are starting to see them look across their portfolio and think about how they work with us in the Syneos One model. So I think that’s something additive that early days of contemplating Syneos One. We didn’t know that we were going to get that benefit and we are now seeing that benefit.

Max Smock: Got it. Very helpful. Thank you.

Operator: Thank you. And our next question coming from the line of Casey Woodring with JPMorgan. Your line is now open.

Casey Woodring: Hi. Thank you for taking my questions. So last quarter on the 0.3 book-to-bill other portion of that was related to push-outs that you are expecting to be recouped in 4Q and then even 1Q 2023. So just curious how much of those push-outs do you recoup in 4Q in the 0.39 number and then how much was pushed out to 1Q here and then how much of that work was ultimately lost?

Michelle Keefe: Thanks for the question, Casey. Of the Q3 delays that were designed in Q4, our win rates definitely stabilized. I think we still have more opportunity there and I think about half of them went to decision and it was about the normal, where we have normally been in regards to our win rate. We are continuing to see some deliberate decision making, but it’s definitely improved sequentially in regards to that decision making. We don’t think that the push-outs long-term are going to continue to be outsized. They are a little bit on the high side right now, but they are not the way they were in Q3. So we think that phenomena is stabilizing.

Page 10 of 13