Competition among the top CROs, many of which are conglomerations of smaller peers, is “ferocious” right now on nearly every level, Parexel CEO Josef von Rickenbach told Outsourcing-Pharma.com at the 51st annual DIA conference.
Although Parexel’s consolidated service revenue increased by only 2% for the quarter, the company reported that its backlog included gross new business wins of $942.4m, which was 5.3% higher than the same quarter as last year.
One quarter after announcing a disappointing book-to-bill ratio, CRO Parexel has now renewed its strategic partnership with GlaxoSmithKline and seen its book-to-bill ratio jump to its highest level since 2012.
As small and medium sized biopharma companies continue to raise cash through IPOs and elsewhere, CROs will see an uptick in outsourced work, Parexel founder, chairman and CEO Joseph von Rickenbach predicted in the company’s earnings call last week.
A year after CRO Parexel saw what its CEO called “hyper growth,” the Massachusetts-based company is seeing revenue gains return to relatively normal levels.
CRO Parexel’s revenue, net income and earnings per share grew substantially in Q4 when compared to the same quarter last year and the company expects similar growth in the next fiscal year.
Parexel’s growth rate has slowed recently to a pace that the company can more easily keep up with than in years past, CEO Josef von Rickenbach told us at DIA’s annual meeting in Boston on Monday.
With a more than 27 percent increase in revenue for Q3 of FY 2013 over the same quarter last year, CRO Parexel has raised its guidance for both the fiscal and calendar year.
Parexel may have raised its forecast for fiscal 2013 after reporting a 26% hike in second quarter revenues this week, but analysts still have concerns about its spending.
Contract research company Parexel saw its share rocket more than 30 per cent yesterday after it reported a hike in its second quarter revenues and despite a fallback in net profits.
Parexel has trimmed back its earnings guidance for the first quarter of fiscal 2009 as it starts the process of integrating ClinPhone, which the company bought for £91m (€114m) last month.
There are currently three key market trends that play to Parexel's
strengths and one of them is the globalisation of clinical trials,
the company's CEO claimed during a healthcare conference earlier
this month.
