What Quintiles CEO Tom Pike described as a “tactical tuck-in” when the world’s largest life sciences firm acquired near-by Novella Clinical last year is turning into just what he expected:

A positive boost to Quintiles’ bottom line.

And Quintiles is looking for additional such “tuck-ins” in 2014.

In a conference call Thursday to discuss the latest quarterly financial report by Quintiles (NYSE: Q), Pike and Chief Financial Officer Kevin Gordon were quizzed by Tejas Savant of JPMorgan about the Novella deal, which cost Quintiles $146.5 million in cash. The giant applied $105.7 million from its May initial public offering proceeds toward the Novella acquisition.

Now as a part of Quintiles, Novella operates as a separate entity within the larger company; while Quintiles’s oncology operations serve large pharmas Novella is the Quintiles unit serving smaller, emerging oncology companies.

  • Kevin Gordon:

“I think as you heard Novella since we acquired it in mid-September add revenue contributions to the fourth quarters. Net total contribution over the period was about $36.5 million of revenue. It were accretive contribution to earnings although minor, it did contribute to the earnings in the fourth quarter, slightly given the impact of the purchasing accounting impacts obviously the company has certainly delivered on profitability but that amortization somewhat offsets to make that contribution minor.

“As far as new business I would say they are contributing at a similar level into the Product Development, new business contribution, so very much in line with the expectations that we set coming into the acquisition. As far as capital deployment I think we’ve been pretty consistent about our desire to continue to invest in growth whether be organically or inorganically through acquisitions.

“Tom mentioned in his remarks we continue to look at acquisitions that are capability building or capability enhancing to our portfolio. We expect to add to earnings or an annualized earnings rate about 2% to 3% through inorganic activities which is very much in line with what you saw with the Novella acquisition. And then certainly you saw us put a smaller purchase program in place back in November and we will always continue to look at opportunities from a shareholder perspective and our board to the extent they decide our would consider alternatives that may enhance that we would also consider that to the extent that’s an appropriate decision for shareholders.”

  • Tom Pike:

“Just one quick thing on Novella …I think we are just very pleased overall. We are pleased with the leadership team, we are pleased with their reputation with customers and as Kevin said the financial performance has been solid essentially right in line with the rest of our business which has been solid as well.”

Quin tiles reported its first $1 billion-plus quarter for services revenue and beat Wall Street expectations.

The earnings report story can be read online.

The full conference call transcript is available at Seeking Alpha.