LSCS Holdings Inc.

Overview Key strengths Key risks Benefits from increasing pharmaceutical outsourcing and growth of specialty drugs Financial-sponsor ownership drives high leverage and higher interest costs are leading to low cash flow generation Competes with much larger companies We expect LSCS will grow near the same pace as in 2023 to 4%-5% net revenue growth in 2024 as biopharma funding recovers, partially offset by pharmaceutical clients remaining cautious with spending. We anticipate the pharmaceutical segment will begin to improve modestly in 2025 and we expect about 7%-9% growth in net revenue. Our growth expectations also reflect our view that LSCS will benefit from the continued expansion of pharmaceutical research and development (R&D) and growth in outsourcing of commercialization services. Increasing levels of

...LSCS Holdings Inc. benefits from favorable industry tailwinds, such as increasing pharma outsourcing and the growth of specialty drugs, despite near-term headwinds. We expect LSCS will grow near the same pace as in 2023 to 4%-5% net revenue growth in 2024 as biopharma funding recovers, partially offset by pharmaceutical clients remaining cautious with spending. We anticipate the pharmaceutical segment will begin to improve modestly in 2025 and we expect about 7%-9% growth in net revenue. Our growth expectations also reflect our view that LSCS will benefit from the continued expansion of pharmaceutical research and development (R&D) and growth in outsourcing of commercialization services. Increasing levels of R&D spending will support rising demand for downstream commercialization services. Although many large pharmaceutical manufacturers retain internal commercialization functions, there has been a trend toward outsourcing these...

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