PAREXEL International Corp. (PRXL, Financial) filed Quarterly Report for the period ended 2009-03-31.
Parexel International Corporation is one of the largest biopharmaceutical outsourcing organizations in the world providing a broad range of knowledge-based contract research medical marketing and consulting services to the worldwide pharmaceutical biotechnology and medical device industries. With a commitment to providing solutions that expedite time-to-market and peak market penetration PAREXEL has developed significant expertise in clinical trials management data management biostatistical analysis medical marketing clinical pharmacology regulatory and medical consulting industry training and publishing and other drug development consulting services. Its information technology subsidiary Perceptive Informatics Inc. develops and offers a portfolio of innovative technology-based products and services that facilitate clinical drug development and are designed to decrease time to peak sales. PAREXEL International Corp. has a market cap of $565.2 million; its shares were traded at around $9.81 with a P/E ratio of 10 and P/S ratio of 0.5. PAREXEL International Corp. had an annual average earning growth of 10.5% over the past 10 years. GuruFocus rated PAREXEL International Corp. the business predictability rank of 2-star.
Selling, general and administrative (SG&A) expense increased by $6.2 million, or 11.7%, to $59.0 million for the three months ended March 31, 2009 from $52.8 million for the three months ended March 31, 2008. This increase was due primarily to $9.5 million of expenses related to ClinPhone, $5.5 million from higher facilities costs, and $1.1 million from an increase in various other expenses including fees for professional services; partially offset by $9.9 million attributable to foreign exchange fluctuations. As a percentage of service revenue, SG&A increased to 22.3% for the three months ended March 31, 2009 from 21.5% for the three months ended March 31, 2008 resulting from higher facilities costs and the impact of a slowdown in service revenue growth.
On a segment basis, CRS service revenue increased by $69.8 million, or 13.1%, to $603.4 million for the nine months ended March 31, 2009 from $533.6 million for the nine months ended March 31, 2008. This increase was due primarily to $109.3 million in additional revenue in the Late Phase portions of the business as a result of continuing strong demand for our services, particularly from the large pharmaceutical segment, and approximately $5.4 million from the acquisition of APEX, which was acquired in the first quarter of Fiscal Year 2008. These increases were partially offset by the negative impact of foreign currency fluctuations of approximately $31.5 million and a decrease of $13.2 million in our Early Phase business, as a result of lower demand.
On a segment basis, CRS direct costs increased by $37.1 million, or 10.5%, to $390.5 million for the nine months ended March 31, 2009 from $353.4 million for the nine months ended March 31, 2008. This increase resulted from approximately $95.5 million in costs to support growth in the Late Phase portions of the business, including $4.5 million related to the acquisition of APEX; partly offset by approximately $26.0 million in lower costs for the Early Phase business, resulting from lower business volume, and $32.4 million attributable to the positive impact of foreign currency fluctuations. As a percentage of service revenue, CRS direct costs decreased to 64.7% for the nine months ended March 31, 2009 from 66.2% for the nine months ended March 31, 2008 driven by improved productivity and efficiency in the Late Phase portions of the business.
PCMS direct costs decreased $5.7 million, or 8.9%, to $58.8 million for the nine months ended March 31, 2009 from $64.5 million for the nine months ended March 31, 2008. This $5.7 million decrease was caused by $4.1 million in positive foreign currency fluctuations and a $2.1 million reduction in expenses for MedCom; partially offset by an increase of approximately $0.5 million in the expenses of our consulting business. As a percentage of service revenue, PCMS direct costs decreased to 64.4% from 66.8% for the respective periods as a result of the impact of shedding unprofitable business lines and improvements in processes.
Perceptive direct costs increased by $28.7 million, or 78.8%, to $65.2 million for the nine months ended March 31, 2009 from $36.5 million for the nine months ended March 31, 2008. Of the total $28.7 million increase, $18.3 million was due to incremental direct costs of ClinPhone, $2.6 million was related to the recording of a reserve for a customer dispute, $0.6 million was associated with the termination of a pre-acquisition Perceptive supplier contract, and $9.7 million related to incremental lab
Read the The complete ReportPRXL is in the portfolios of Edward Owens of Vanguard Health Care Fund, Edward Owens of Vanguard Health Care Fund.
Parexel International Corporation is one of the largest biopharmaceutical outsourcing organizations in the world providing a broad range of knowledge-based contract research medical marketing and consulting services to the worldwide pharmaceutical biotechnology and medical device industries. With a commitment to providing solutions that expedite time-to-market and peak market penetration PAREXEL has developed significant expertise in clinical trials management data management biostatistical analysis medical marketing clinical pharmacology regulatory and medical consulting industry training and publishing and other drug development consulting services. Its information technology subsidiary Perceptive Informatics Inc. develops and offers a portfolio of innovative technology-based products and services that facilitate clinical drug development and are designed to decrease time to peak sales. PAREXEL International Corp. has a market cap of $565.2 million; its shares were traded at around $9.81 with a P/E ratio of 10 and P/S ratio of 0.5. PAREXEL International Corp. had an annual average earning growth of 10.5% over the past 10 years. GuruFocus rated PAREXEL International Corp. the business predictability rank of 2-star.
Highlight of Business Operations:
On a segment basis, CRS service revenue increased by $8.1 million, or 4.2%, to $199.7 million for the three months ended March 31, 2009 from $191.6 million for the three months ended March 31, 2008. The $8.1 million increase was driven by a $40.5 million increase in the Late Phase portions of the business, where our status as a preferred provider with many of our clients continues to drive our growth; offset by $25.7 million attributable to the negative impact of foreign currency fluctuations and a decrease of $6.7 million in our Early Phase business.Selling, general and administrative (SG&A) expense increased by $6.2 million, or 11.7%, to $59.0 million for the three months ended March 31, 2009 from $52.8 million for the three months ended March 31, 2008. This increase was due primarily to $9.5 million of expenses related to ClinPhone, $5.5 million from higher facilities costs, and $1.1 million from an increase in various other expenses including fees for professional services; partially offset by $9.9 million attributable to foreign exchange fluctuations. As a percentage of service revenue, SG&A increased to 22.3% for the three months ended March 31, 2009 from 21.5% for the three months ended March 31, 2008 resulting from higher facilities costs and the impact of a slowdown in service revenue growth.
On a segment basis, CRS service revenue increased by $69.8 million, or 13.1%, to $603.4 million for the nine months ended March 31, 2009 from $533.6 million for the nine months ended March 31, 2008. This increase was due primarily to $109.3 million in additional revenue in the Late Phase portions of the business as a result of continuing strong demand for our services, particularly from the large pharmaceutical segment, and approximately $5.4 million from the acquisition of APEX, which was acquired in the first quarter of Fiscal Year 2008. These increases were partially offset by the negative impact of foreign currency fluctuations of approximately $31.5 million and a decrease of $13.2 million in our Early Phase business, as a result of lower demand.
On a segment basis, CRS direct costs increased by $37.1 million, or 10.5%, to $390.5 million for the nine months ended March 31, 2009 from $353.4 million for the nine months ended March 31, 2008. This increase resulted from approximately $95.5 million in costs to support growth in the Late Phase portions of the business, including $4.5 million related to the acquisition of APEX; partly offset by approximately $26.0 million in lower costs for the Early Phase business, resulting from lower business volume, and $32.4 million attributable to the positive impact of foreign currency fluctuations. As a percentage of service revenue, CRS direct costs decreased to 64.7% for the nine months ended March 31, 2009 from 66.2% for the nine months ended March 31, 2008 driven by improved productivity and efficiency in the Late Phase portions of the business.
PCMS direct costs decreased $5.7 million, or 8.9%, to $58.8 million for the nine months ended March 31, 2009 from $64.5 million for the nine months ended March 31, 2008. This $5.7 million decrease was caused by $4.1 million in positive foreign currency fluctuations and a $2.1 million reduction in expenses for MedCom; partially offset by an increase of approximately $0.5 million in the expenses of our consulting business. As a percentage of service revenue, PCMS direct costs decreased to 64.4% from 66.8% for the respective periods as a result of the impact of shedding unprofitable business lines and improvements in processes.
Perceptive direct costs increased by $28.7 million, or 78.8%, to $65.2 million for the nine months ended March 31, 2009 from $36.5 million for the nine months ended March 31, 2008. Of the total $28.7 million increase, $18.3 million was due to incremental direct costs of ClinPhone, $2.6 million was related to the recording of a reserve for a customer dispute, $0.6 million was associated with the termination of a pre-acquisition Perceptive supplier contract, and $9.7 million related to incremental lab
Read the The complete ReportPRXL is in the portfolios of Edward Owens of Vanguard Health Care Fund, Edward Owens of Vanguard Health Care Fund.
