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

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Eric Coldwell: And then finally for me, the last quarter, there was a lot more detail on metrics around Clinical bookings and RFPs rates, delays, et cetera. Now we are looking at a couple of pretty tough quarters on Clinical awards, three quarters of negative book-to-bill in total. Can you talk a bit about share loss versus simply delays and timing issues? It clearly, at this point, is starting to feel like there’s some more obvious signs of share loss here. I am just curious if you can talk about clients that you have talked about six preferred deals with big pharma, but have you lost any deals?

Michelle Keefe: Eric, thanks for that question as well. So we know that the new model is receiving really positive customer feedback and we, I am sorry, I missed that. Eric, can you just repeat the end, I didn’t hear you clearly. I am sorry.

Eric Coldwell: Yeah. I mean, look, bottomline is, I am always a bit reluctant to call share loss after one bad quarter. But now we have two rough quarters in Clinical awards, three quarters ago wasn’t great. Feels like you are seeing share loss. We have heard about some new wins, but I am hoping you can give some stats or metrics on actually saying, yes, look, in fact, we have shared these aren’t just delays or timing issues, that it’s something more than that and I was hoping you could share your views on having customers that have actually tried it over the last few quarters? Thank you.

Michelle Keefe: Okay. So we have shared some of the green shoots, as you know, around our repeat business rate is improving with SMIDs and new large pharma partnerships. We are also seeing some rescues and so, we feel like we are going in the right direction. But we understand the position we are in and we know we have to improve our RFP volume. We have to improve our win rates and it’s really important that we add those large pharma partnerships. As you know, we have got one or two that we are looking at this year and that we are in contention for and that’s going to be really important and we need to convert the more high value opportunities. So we know those are the things we need to, to stay competitive in the marketplace.

Operator: Thank you. One moment please for our next question. And our next question coming from the line of Justin Bowers with Deutsche Bank. Your line is open.

Justin Bowers: Hi. Good morning, everyone. Michelle, could you provide us with a little more color on the six strategic partnership that you guys have won? I know that’s been a priority area for the company for several years, and I think you said, they will be consolidating 60 vendors into two. Just a little more, we just want to verify that. And then do you have a sense of, is this going to be FSP heavy or full service or hybrid and when — how should we think about the ramp for that and then related to that — yeah, I will pause there for now.

Michelle Keefe: Sure. Thanks for the question. So, yeah, we are excited about the six partnerships. So this was a top 10 customer for us. They — we were doing really well there and they had FSP vendors across the globe, like, they have some small regional vendors across the globe and they really want to think about how they could be more efficient and effective in deploying their FSP solution. And so, we brought our consulting team in to work with them to design what their outsourcing model should like and could look like from an FSP perspective, partnering with the manufacturer on what we could look like there and they made the decision to take that instead of that regional approach to a more global approach and it shows us as one of two vendors.

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