Boston-based pharmaceutical services company Parexel International Corp. (Nasdaq: PRXL) announced Thursday that is has executed a definitive purchase agreement to acquire the business and operations of the San Diego companies California Clinical Trials Medical Group Inc. and Behavioral and Medical Research LLC.
Established in 1981, CCT and BMR provide specialty Phase I - IV clinical research services through four clinical sites in California. The purchase price is $65 million, and the acquisition is expected to close within the next thirty days.
"The acquisition will further strengthen our global Clinical Pharmacology Network with the addition of 51 Phase I beds on the West Coast," said Josef von Rickenbach, chairman and chief executive officer of Parexel. "The deep experience that CCT and BMR have with central nervous system clinical trials and neuroscience drug development services, combined with their expertise in performing complex studies, will enhance the services we currently provide to clients."
A 35-bed unit located on the campus of the Glendale Adventist Medical Center combined with an additional 16 beds that are currently under construction at another location, which will expand Parexel's Clinical Pharmacology capacity to over 400 beds, von Rickenbach explained, making Parexel one of the largest providers of Phase I services in the world.
Von Rickenbach also noted that CCT and BMR have been pioneers in Japanese bridging studies, working closely with Japanese regulatory officials to enable pharmaceutical companies to save time and development costs by gathering the data necessary for Japanese regulatory submissions from sites outside of Japan. CCT has established a franchise with expertise in the area of sleep disorders, which will be an excellent complement to the sleep studies Parexel currently offers.
"The revenue and profits the acquisition will bring will also help to accelerate a return toprofitability in Parexel's U.S. operations," he said.
Stock in Parexel rose $1.30 in afternoon trading and an additional 5 cents in after hours trading, to $33.34 a share. The companies stock has been steadily rising over the past 6 months.
Robert Palko, president and CEO of CCT and BMR, said that joining forces with Parexel will help his own company reach more clients. "We look forward to better leveraging our specialized expertise as we integrate our company with Parexel's robust consulting and clinical research services portfolio," he said.