Parexel eyes logistics with latest EU expansion

Parexel International ($PRXL) has cut the ribbon on a new clinical trial supply hub in Europe, centralizing the CRO's continental logistics services as part of a companywide effort to more efficiently conduct studies around the globe.

The new outpost, in Berlin-Schonefeld, Germany, measures about 213,000 cubic feet and will house trial supplies, lab kits and ancillary materials, the company said. The center will serve as Parexel's go-to operation for European studies, storing active ingredients, handling packaging and shipping, and managing the many regulatory requirements necessary to supply the R&D process.

"To safely and efficiently conduct clinical trials, our customers need highly specialized clinical supply and logistics services for studies that can span dozens of countries and hundreds of sites around the world," President and Chief Operating Officer Mark Goldberg said in a statement. "Our new European distribution center reflects a commitment to simplify the important end-to-end supply-management aspect of the drug-development journey."

At the same time, Parexel is opening up similar supply depots in Buenos Aires, Argentina, and São Paulo, Brazil, augmenting its global network of more than 50 in-house or in-licensed facilities that help the CRO maintain a flow of study materials across the world.

Meanwhile, the CRO is forecasting its biggest fiscal year yet, expecting between $2.1 billion and $2.2 billion in the 12 months that end June 30, good for up to 10% annual growth. Parexel pulled in $1.9 billion in fiscal 2014 service revenue, a 12% leap over the $1.7 billion it grossed the year before, thanks to double-digit growth in its clinical research segment and another stellar year for its informatics business, which jumped more than 17% to $267.9 million.

- read the statement