Parexel Reports 26% First Quarter Revenue Increase
Boston, Mass.-based Parexel International reported service revenue increased 26.1% to $208.1 million for its first quarter of 2008 compared with $165.1 million during the same period of last year. The CRO ended the quarter with operating income of $16.5 million and margins of 7.9%. That compares with $11.3 million for the same period last year and a 6.9% margin. Net income for the quarter was $13.9 million compared with net income of $7 million.
Parexel’s Clinical Research Services (CRS) business constituted $159.3 million, or more than 75% of the company’s total revenue. Perceptive Informatics, the company’s technology division, contributed $18.3 million to the CRO’s top line and Parexel’s Consulting and Medical Communications Services unit brought in $30.5 million. The company is expecting full year’s revenue to be in the range of $890 to $920 million.
It completed its purchase of APEX Clinical Research, a CRO based in Taiwan that has operations throughout the Asia Pacific region. The company paid $50.9 million in cash for the remaining 20.3 million shares of APEX. The newly acquired company will become a wholly-owned subsidiary and will be named Parexel APEX International. Parexel had already purchased a minority interest in the CRO in April 2003.