CRO

Parexel touts its IT-enabled R&D services amid company shakeup

Parexel International ($PRXL), in the midst of sweeping cost cuts, said it has further integrated technology into its drug development services, creating a data-informed process designed to speed up timelines and save money.

The CRO's so-called Clinical Development Optimization process relies on using informatics at every stage of the trial cycle, Parexel said, from study design to regulatory submission.

The overarching goal is to speed up patient recruitment and avoid protocol delays, according to the company, two common clinical roadblocks that can delay development and add millions of dollars to the overall cost. Nearly half of all trial sites miss their initial enrollment targets, Parexel said, forcing sponsors to extend their planned study lengths and burn through cash. And a single amendment to trial protocol tacks an average $500,000 more onto the final cost, according to the company.

Parexel's retooled approach to trial design and execution relies heavily on its informatics division, long a source of consistent growth for the CRO. Formerly Perceptive Informatics, Parexel rebranded its tech-focused segment last year after acquiring it in 2005.

Meanwhile, the company is in process of shedding about 850 jobs in an effort to save between $20 million and $30 million a year. Last month, Parexel reduced its revenue expectations for the fiscal year, dialing back its goal by about 2% at midpoint to around $2.14 billion.

- read the statement