ALXN - Astrazeneca/Alexion deal impacts IQVIA: BofA

The consolidation of biopharma customers is 'a risk to CROs’ as it can lead to downsizing of R&D budgets and outsourcing, Bank of America says in a note evaluating the impact on IQVIA Holdings (IQV) from the proposed merger between Alexion (ALXN) and AstraZeneca (AZN).Identifying IQVIA as ‘a strategic CRO partner to AZN’, the analyst, Juan E. Avendano, comments, the finalization of the merger could be a ‘near-term negative for IQV and any other CRO providers to AZN and/or ALXN.’According to Avendano, ‘there could be delays in outsourcing decisions,’ making it ‘more difficult for CROs to attain new business.’ as the combined firm rationalizes its drug pipeline,However, given the attractiveness of outsourcing for cost containment, CRO’s could be potential winners in the long-term as the merged company attempts to realize cost synergies from the deal handing new business opportunities to CROs.Assuming the combined firm retains its current CROs, and as

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Astrazeneca/Alexion deal impacts IQVIA: BofA