PAREXEL International Corp. (B)

Abstract

This case, the denouement to "PAREXEL International Corp. (A)," describes developments at PAREXEL and the biopharmaceutical industry from 2002 to 2011. Through an investment of $365 million over 10 years, PAREXEL has built a strong technology services business which is its key differentiator, although clinical trials remain its most lucrative segment. Additionally, PAREXEL, like others in the industry, has expanded its presence in lower-cost locations, especially the strategically important Asia-Pacific region. Another key change is the growing number of long-term strategic partnerships between CROs and their biopharmaceutical clients, reflecting the strengthened, more equal relationship between the two players. These developments have occurred against a backdrop of a persistent lull in R&D productivity and serious profitability concerns among large drug companies as some of their top-selling products face generic competition. With some observers forecasting an overhaul of the biopharmaceutical R&D structure, students are left to consider what the future holds for PAREXEL.

Learning Objective: Describes the evolution of CROs in the biopharmaceutical industry from the date of the A case in this series to the present, in the context of an entrepreneurial and business growth story.