PAREXEL To Launch Connected Journey Data-Driven Services

PAREXEL International Corporation (NASDAQ:PRXL) , a global biopharmaceutical services company and provider of clinical research and logistics, recently announced the launch of its proprietary data-driven services, Connected Journey.

Stock Performance

The price performance of PAREXEL International has been favorable for the last three months. The stock gained 36.98%, outperforming the Zacks classified Medical Services sub-industry’s gain of almost 7.84%. The current level compares favorably with the S&P 500’s return of 5.18%, over the same time frame.

The estimate revision trend for the current year was favorable in the last two months. Two estimates moved south against six movements in the opposite direction.

Coming back to the news, the launch of Connected Journey is a smart move by the company as there was a growing demand from life science companies. These companies are seeking to gain insights from diverse data sources to make drug development efficient and effective.

The Connected Journey is an integrated range of solutions that covers the entire drug development process and allows a variety of stakeholders to engage with the process. Thus, it helps researchers make critical decisions quickly. The insights are delivered as user-friendly visualizations that allow stakeholders, at any level, to engage with the data.

PAREXEL’s proprietary Connected Journey services consist of more than 40 innovative data-driven services. Its most recent innovation, the ForeSite clinical trial methodology, integrates therapeutic area expertise, real-time analytics technology, and centralized oversight to more reliably predict site productivity. The solution enables users to optimize feasibility and site and country selection, as well as to more effectively engage and retain sites and patients.

PAREXEL is focused on expediting activities in growing areas like protocol design, study start-up, trial execution, regulatory submission and product commercialization. By integrating its data-driven services, the company has accelerated a number of key processes. These processes include rapid movement from final protocol available to last site initiated, accelerating site activation and achieving faster turnaround from database lock to clinical study report. Per company estimate, the use of its services is helping biopharmaceutical clients complete clinical trials 22% faster than the industry average.

Going forward, we believe that PAREXEL primarily aims at diversifying its core business through launches like this. In fact, the company is striving to come up with a single solution for all the clinical development outsourcing needs of clients by unifying the highly advanced tasks of clinical monitoring, data management, biostatistics, site monitoring, study management, medical writing and pharma covigilance.

Meanwhile, the biopharmaceuticals market is forecast to reach a worth of $278 billion by 2020 at a CAGR of 9.4%, per Persistence Market Research. We expect PAREXEL to gain significant traction in the biopharmaceutical and related ancillary markets, backed by the favorable trend and the takeover.

Key Picks

PAREXEL International currently carries a Zacks Rank #3 (Hold).

Some better-ranked medical stocks are Align Technology, Inc. (NASDAQ:ALGN) , Inogen, Inc. (NASDAQ:INGN) and Accelerate Diagnostics, Inc. (NASDAQ:AXDX) . Both Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 21% in the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 96%.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has added roughly 17% in the last three months.

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