• SKIP TO CONTENT
  • SKIP NAVIGATION
  • Patient Resources
    • COVID-19 Patient Resource Center
    • Clinical Trial Listings
    • What is Clinical Research?
    • Volunteering for a Clinical Trial
    • Understanding Informed Consent
    • Useful Resources
    • FDA Approved Drugs
  • Professional Resources
    • Research Center Profiles
    • Market Research
    • Benchmark Reports
    • FDA Approved Drugs
    • Training Guides
    • Books
    • eLearning
    • Events
    • Newsletters
    • White Papers
    • SOPs
    • eCFR and Guidances
  • White Papers
  • Clinical Trial Listings
  • Advertise
  • COVID-19
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Home » Parexel Lowers Forecast After Client Reneges

Parexel Lowers Forecast After Client Reneges

January 14, 2009
CenterWatch Staff

Funding difficulties have caused the sponsor of a large clinical trial to pull out of a contract with Parexel, which will negatively affect the CRO’s second quarter and full-year 2009 financial results.

Parexel has been running a large global phase III clinical trial for the client, an unnamed small biopharma company, since September 2007. 

“The client appeared adequately funded, had been paying their bills, and indicated to Parexel that it had secured venture-backed financing to cover its commitments. However, their financing syndicate unraveled as a result of the global financial crisis, and they were unable to close a planned financing round under their committed capital agreements,” said Parexel chairman and CEO Josef von Rickenbach in a company release.

Parexel expects this contract cancellation and related bad debt will have a negative impact on its diluted earnings per share in the range of $0.14 to $0.16 for the quarter ended December 31, 2008. The company will release its Q2 results January 26.

Parexel has reduced its expected consolidated service revenue for the second half of the fiscal year 2009 by $6 million as a result of this contract termination.

The CRO now expects its fiscal year 2009 consolidated service revenue will be in the range of $1.08 billion to $1.11 billion, down from the company’s previous guidance range of $1.1 billion to $1.13 billion.

According to a release, Parexel has reviewed backlog and receivables and does not expect there to be any similar material losses forthcoming. The company does not foresee layoffs or restructuring related to this loss.

In late afternoon trading Tuesday, Parexel’s share prices were down 3.29% to $8.81.

Featured Products

  • Spreadsheet Validation: Tools and Techniques to Make Data in Excel Compliant

    Spreadsheet Validation: Tools and Techniques to Make Data in Excel Compliant

  • Surviving an FDA GCP Inspection

    Surviving an FDA GCP Inspection: Resources for Investigators, Sponsors, CROs and IRBs

Featured Stories

  • MAGI East 2023

    MAGI East 2023 Preview: Janssen Reports on Environmental Impact of Trials

  • Complexity-360x240.png

    Phase 3 Trials Significantly Rising in Complexity, Says CSDD

  • Quality Level Scale

    Build Quality into Trials Like You’d Build a House, Says FDA’s BIMO Director

  • DE&I

    Trust-Building, Community Connection Still Essential to DE&I Efforts, Experts Say

Standard Operating Procedures for Risk-Based Monitoring of Clinical Trials

The information you need to adapt your monitoring plan to changing times.

Learn More Here
  • About Us
  • Contact Us
  • Privacy Policy
  • Do Not Sell or Share My Data

Footer Logo

300 N. Washington St., Suite 200, Falls Church, VA 22046, USA

Phone 703.538.7600 – Toll free 888.838.5578

Copyright © 2023. All Rights Reserved. Design, CMS, Hosting & Web Development :: ePublishing