APEX International Clinical Research Co.,
CRO Parexel expands and acquires Apex in China
Parexel International (PRXL), the CRO powerhouse, increased its presence in the China CRO market by acquiring Apex International Clinical Research Co., Ltd of Taiwan. Parexel paid $50.9 million for 93.9% of the outstanding shares. The Massachusetts company has owned a minority stake in Apex for the past four years. Apex has established offices throughout the Asia-Pacific region, including mainland China and Hong Kong. Parexel is a worldwide CRO, but it now has upped its in-house facilities in Taiwan, China and the Asia-Pacific region.
In a press release, Josef von Rickenbach, Chairman and Chief Executive Officer of Parexel, said clients were demanding services in the Asia-Pacific region because of the markets there, plus the sophisticated healthcare systems and highly trained professionals in the region. He did not mention the cost savings. In a recent interview published in BioSpectrum, Albert Liou, Chairman and CEO of Apex International, said that each country has its strengths and weaknesses as a site for clinical trials, but China has the best outlook overall. Within three to five years, it will be one of the top five markets in the world, he said, so companies will develop products in China to meet the needs of its vast population. In its fiscal 2007, ended June 30, Parexel reported revenues of $742 million, up 21%, and net income of $37.3 million, an increase of 53%. Its CRO revenues were $549 million. Although Apex will be part of Parexel for only three weeks of its first quarter, Parexel said the new division would add $1 million in revenue in that quarter and up to $17 million for the 2008 fiscal year.... more