August 26, 2008

Inventiv: A Hidden Gem

While reading the Fool, I came across InVentiv, a company that the Fool has disclosed as a Motley Fool Hidden Gems recommendation.

Inventiv provides outsourcing services to the pharmaceutical industry. These services include helping to staff and run clinical trials, advertising and marketing services used to build brands, pharmaceutical sales forces, market research and analytics, and more. Small to mid-sized companies use inVentiv because they do not want to incur the overhead costs of having their own sales force or don't have the expertise to gain Food and Drug Administration approval. Larger companies use outsourcers like inVentiv to hold down overhead expenses and provide flexibility as the number of products in the approval process and being marketed varies over time.

Growth Prospects

The company is growing by entering new markets and acquiring existing companies. As mentioned here, the company is expanding its services into Latin America. Inventiv also purchased Patient Marketing Group at the beginning of August.

Insider Buying

The CEO, Executive Chairman, COO have purchased shares this month.

Valuation

Inventiv sports a P/E of 14.18 and a forward P/E of 12.13. It appears that the earnings miss last quarter has provided an opportunity to buy cheap growth.

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