eResearch Turns Around into a Growth Story

The long-term investment thesis is really beginning to play out quite nicely for shares of eResearch Technology Inc. (ERES).<!--more--> The provider of cardiac safety services that evaluate the safety of new drugs has garnered record new bookings while increasing its share of the cardiac testing market, but it’s been a long time coming.

A little over a year ago when we more frequently covered eResearch, the company was in the midst of a turnaround with a relatively new management team at the helm to help right the ship that focused on cost cutting and efficiency improvements to post better earnings. CEO Dr. Michael McKelvey, was right when he said 2006 would represent a “favorable turning point for the company” that would “lead to a successful and more profitable 2007? and beyond due in part to turnaround efforts, and the trend towards outsourcing clinical trials.