Parexel (PRXL +0.3%) signs an Accelerated Share Repurchase (ACR) agreement with Goldman Sachs to repurchase $150M of PRXL common stock. The firm will fund the ACR through existing cash on hand and via existing credit facilities. Repurchased shares will be cancelled and returned to the status of authorized and unissued shares.
Earlier, ISI's Ross Muken upgraded the stock to Buy from Neutral.
Muken has a positive outlook for the clinical research organization space based on "improved pipeline success rates at biopharma, a rebound in biotech funding, and continued vendor consolidation among sponsors."
Parexel (PRXL -3.4%) slips after announcing preliminary revenue guidance for FY14 that was below analysts' estimates. It did however, affirm its prior view for the current quarter and current fiscal year. Additonally, the company says it's entered into a note purchase agreement with a select group of institutional investors for $100M in private placement financing. PRXL will sell notes with a seven year bullet maturity and a 3.11% coupon. Proceeds will be used to pay down outstanding debt under its revolving credit facility.
Parexel (PRXL -0.4%) slips on a tepid Neutral initiation at ISI today. The firm says that despite the potential tailwinds, current valuation is already reflective of the market's enthusiasm for the stock, and most of the near term good news has already been baked-in.
Parexel International Corp is a biopharmaceutical company, providing clinical research, medical communications services, consulting, and informatics and advanced technology products and services to the pharmaceutical and biotechnology.