Direct Answer
10 SEC filers are classified under the Standard Industrial Classification code that describes the research & manufacturing services industry, and their latest annual reports show $28.2 billion of combined revenue and a median operating margin of -78.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Research and manufacturing service companies provide discovery, development and production for drug and biotech clients, from lab studies to commercial manufacturing. Revenue is project and contract-based, and follows outsourcing and funding. The first numbers to compare across companies here are backlog and bookings, revenue by service line and operating margin.
Key Industry Metrics
- Backlog and bookings: Signed work not yet completed and new orders signed. Bookings lead revenue, and backlog gives visibility into coming quarters.
- Revenue by service line: Sales split among discovery, development and manufacturing. Each has its own margins and cycles, so mix shows exposure.
- Operating margin: Share of revenue left after labor, plant and overhead. It is sensitive to utilization, so falls often follow idle capacity.
- Capacity utilization: Share of available lab and plant capacity in use. High use spreads fixed cost and supports margin, while low use signals overbuild.
- Customer concentration: Share of revenue from largest clients. Concentration raises the impact of any single program cancellation.
Primary Macro Drivers
- Biotech and pharma outsourcing: Drug developers outsource lab work and production to avoid fixed investment, which lifts bookings and backlog for service providers.
- Funding conditions: Small developers rely on outside help, so weak funding markets reduce new projects and bookings.
- Biologics and gene therapy demand: Cell and gene therapies and biologics need specialized capacity, which raises demand for providers with the right equipment and skills.
- Capacity needs: Clients that book space for coming batches and launches commit revenue in advance, so their capacity needs set utilization, backlog and margin.
Major Risks
- Customer concentration: A few large clients make up much of revenue, so a project ending or a loss moves results; watch customer concentration and backlog.
- Funding downturns: When funding tightens, clients pause or cancel work; watch bookings, cancellations and the biotech share of backlog.
- Capacity overbuild: Capacity added ahead of demand lowers utilization and margin; watch capacity utilization and capital spending plans.
- Quality incidents: Quality failures can lead to rejected batches, lost clients and inspection findings; watch warning letters and customer commentary.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Research & Manufacturing Services Filers in the SEC Record
10 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 8731. Their latest fiscal years end in 2025, and together they reported $28.2 billion of revenue. Median revenue growth over the prior year was -9.2%. Median operating margin was -78.3% and median net margin -69.4%. Median total liabilities were 44% of total assets, and 4 of 10 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Iqvia Holdings Inc. | $16.3 billion | 5.9% | 13.4% | 8.3% | FY 2025 |
| Incyte Corp | $5.1 billion | 21.2% | 29.5% | 25.0% | FY 2025 |
| Charles River Laboratories International, Inc. | $4.0 billion | -0.9% | 0.6% | -3.6% | FY 2025 |
| Medpace Holdings, Inc. | $2.5 billion | 20.0% | 21.1% | 17.8% | FY 2025 |
| Nrc Health | $137 million | -4.0% | 16.4% | 8.4% | FY 2025 |
| Maxcyte, Inc. | $33 million | -14.5% | -157.1% | -135.1% | FY 2025 |
| Omniab, Inc. | $19 million | -29.3% | -369.5% | -347.0% | FY 2025 |
| Bioaffinity Technologies, Inc. | $6 million | -34.2% | -171.6% | -242.0% | FY 2025 |
The 8 largest of 10 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Research & Manufacturing Services guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Research & Manufacturing Services industry?
Key performance indicators for the Research & Manufacturing Services industry include: Backlog and bookings, Revenue by service line, Operating margin, Capacity utilization, Customer concentration. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Research & Manufacturing Services industry?
The Research & Manufacturing Services industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Research & Manufacturing Services industry?
The primary risks for Research & Manufacturing Services companies include: Customer concentration, Funding downturns, Capacity overbuild, Quality incidents. Investors should assess each company's exposure to these factors and its track record of navigating them.