Featured Company News - Pamplona to Acquire PAREXEL; Another Contract Researcher Goes Private
Research Desk Line-up: Organovo Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 22, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for global biopharmaceutical services provider, PAREXEL International Corp. (NASDAQ: PRXL), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=PRXL. The Company announced on June 20, 2017, that it has signed a definitive agreement with Pamplona Capital Management, pursuant to which, Pamplona will acquire all the outstanding shares of PAREXEL for $88.10 per share in cash. The all-cash offer represents a 27.9% premium to PAREXEL's unaffected closing price on May 05, 2017, for a total purchase price of $5.0 billion, including PAREXEL's net debt of $428 million, at the end of Q3 FY17 ended March 2017. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Discover more of our free reports coverage from other companies within the Medical Laboratories & Research industry. Pro-TD has currently selected Organovo Holdings, Inc. (NASDAQ: ONVO) for due-diligence and potential coverage as the Company reported on June 07, 2017, its financial results for Q4 FY17 and also issued its full-year fiscal 2018 outlook. Tune in to our site to register for a free membership, and be among the early birds that get our report on Organovo when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PRXL; also brushing on ONVO. Go directly to your stock of interest and access today's free coverage at:
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About the Acquisition
PAREXEL views this transaction as a step post the comprehensive review of alternatives and opportunities, available, including interest solicited and received from multiple parties with the help of independent financial and legal advisors. PAREXEL's board had undertaken a comprehensive review of its options and has decided that the all-cash transaction was in the best interest of PAREXEL, but shareholders still have to vote on it before the deal closes in Q4 FY17. This acquisition will help the Company achieve a more flexible corporate structure while advancing its strategy according to recent evolutions in the biopharmaceutical services segment. PAREXEL has a strong operating foundation with expertise and resources to support its clients during the clinical trials around the world.
PAREXEL expects to leverage the extensive expertise of Pamplona in the healthcare and pharmaceutical segments to deliver growth to its business. This transaction delivers PAREXEL's shareholders and 19,600 employees an innovative way to help clients and advance the development and commercialization of new medical therapies worldwide.
PAREXEL Portfolio
PAREXEL provides advanced technology solutions, medical imaging and also facilitates the integrated clinical development. PAREXEL has offices in 86 locations in 51 countries around the world and has approximately 19,600 employees to provide a broad range of expertise-based consulting to the worldwide pharmaceutical, biotechnology, and medical device industries.
PAREXEL had net debt of $428 million at the end of its third quarter, which ended in March 2017. The Company is one of the largest firms performing contract research and managing clinical trials for drug makers. Prior to the purchase, PAREXEL had also been cutting costs aggressively and plans to eliminate more than 1,000 jobs of its 19,600 jobs worldwide.
Pamplona Growth Prospects
Pamplona Capital Management, which is based in London, New York, and Boston, is a specialist investment manager that offers alternative investment platform across private equity, fund of hedge funds, and single-manager hedge fund investments. The Company currently manages over $10 billion in assets across numerous funds for different clients, across public pension funds, multinational corporations, international wealth managers, and family offices. Pamplona has been one of the most active private equity investors in the healthcare industry, where it recently invested in nThrive, Formativ Health, Brighton Health Group, Alvogen, Spreemo, PatientCo, and Intralign. The Company has raised five funds of over €7 billion ($7.8 billion) of capital commitments with various healthcare services companies.
The Contract Research Industry
Pamplona has been searching through the market for a potential research organization acquisition since 2016. It made an unsuccessful bid in 2017 to acquire Pharmaceutical Product Development LLC (PPD), a US clinical trials firm, valued at about $9 billion. The contract research industry has undergone a wave of consolidations, under which pharmaceutical Companies have targeted reduced costs, clinical trial times, and plan to expand their research and development presence around the world.
In June 2017, contract development and management organization Albany Molecular Research agreed to be acquired by affiliates of The Carlyle Group and GTCR for about $922 million in cash. In May 2017, Thermo Fisher Scientific stated that it planned to acquire Patheon for about $7.2 billion in cash.
The transaction has been unanimously approved by Parexel's Board of Directors which intends to recommend shareholders' approval of the agreement with Pamplona.
Last Close Stock Review
PAREXEL Intl.'s share price finished yesterday's trading session at $87.25, marginally up 0.24%. A total volume of 2.92 million shares have exchanged hands, which was higher than the 3-month average volume of 1.07 million shares. The Company's stock price skyrocketed 40.73% in the last three months, 35.57% in the past six months, and 46.93% in the previous twelve months. Additionally, the stock soared 32.76% since the start of the year. Shares of the Company have a PE ratio of 38.45 and currently have a market cap of $4.38 billion.
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