Parexel ($PRXL) figures it can rake in more than $2 billion in revenue in the next fiscal year, banking on a solid book-to-bill ratio and increasing global demand to deliver an all-time high.
The CRO is expecting between $2.1 billion and $2.2 billion in fiscal 2015, which begins July 1, good for more than 10% growth over the company's projected 2014 haul of $1.9 billion.
The forecast signals another double-digit-growth year for the Boston company, which leapt 12% last year. Parexel has attributed its steady growth to maintaining relationships with Big Pharma but also gaining momentum among small and mid-sized drugmakers.
Last quarter, the CRO brought in $492.4 million in service revenue, about 8% above the same period last year. Parexel's sizable clinical research segment led the way, growing 9% to $373.2 million, while its recently rebranded informatics business jumped 9% to $67.3 million and its consulting branch ticked up 2% to $51.8 million. The company's net income leapt 18% to $34.7 million on the quarter.
Parexel is in the midst of a sweeping rebranding effort through which it is looking to better entrench itself in the high-stakes competition between the largest players in an increasingly top-heavy market. The goal is to better establish Parexel's disparate offerings as a continuum of services, CEO Josef von Rickenbach has said, and the CRO has retitled its banner eClinical business to bear the company's name.
- read the statement