|Parexel CEO Josef von Rickenbach|
CRO giant Parexel International ($PRXL) is acquiring an Indian company devoted to pharmacovigilance, looking to expand its share of the global market for managing drug safety data.
Parexel is paying an undisclosed sum for Quantum Solutions India, a Chandigarh-headquartered company that handles the collection, detection and monitoring of drug side effects for pharma, med tech and consumer health clients. The company employs about 900 people around the world, Parexel said, and the CRO expects to close the buyout next month.
Once the deal's done, Parexel will fold QSI into the postapproval services arm of its consulting operation, expanding that business to better compete for pharmacovigilance contracts.
"It will help us to create greater scale in this service area, and thereby enable us to provide a more comprehensive, efficient, and economical solution to clients around the world," Parexel CEO Josef von Rickenbach said in a statement. "Combined with the existing post-approval and regulatory strengths of Parexel, this acquisition will support the expansion of our pharmacovigilance services onto a broader platform."
Meanwhile, Parexel has dimmed its expectations for fiscal 2015 after some disappointing sales and currency exchange hindrances. The CRO is expecting about $2 billion in 2015 revenue, a roughly 2% reduction from the $2.1 billion it forecast back in October. In the quarter ended Dec. 31--the second of Parexel's fiscal year--the company brought in $499.3 million in revenue, a 2.5% increase over the same period the prior year.
- read the statement