At around this time last year, Parexel International ($PRXL) experienced a shortfall in revenue and less-than-spectacular financial results. Fast-forward to today, and the CRO's third-quarter finances have done a complete 180.
In its third-quarter financial report, Parexel announced it earned $356 million in consolidated service revenue, an 18.1% increase from the same quarter last fiscal year. At the end of March, Parexel's backlog was valued at $4.2 billion, a year-over-year increase of 32.5%.
How did the CRO reach such a point so quickly? Being one of the two CROs Pfizer ($PFE) selected to supply with its clinical development services over 5 years may have had something to do with it. Parexel also ramped up its Clinical Research Services sector by bringing on new hires and shifting international clinical trial work from Asia to the U.S. and Europe.
"I believe that system enhancements and operational improvement initiatives in the Clinical Research Services segment, focused on improving margins and further increasing client satisfaction, are taking root," notes Parexel chairman and CEO Josef H. von Rickenbach in the report. "We achieved strong wins in all market segments, including those outside of strategic partnerships, as well as small and emerging companies."
Coming off such a strong performance, Parexel expects to see even more growth in its fourth quarter. The Waltham, MA-based CRO predicts that its consolidated service revenue will reach anywhere between $376 million and $381 million, bringing the predicted total for the 2012 fiscal year up to $1.385 billion.
- see the Parexel release