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.
Synergy Pharmaceuticals (SGYP +5.3%) moves up after saying its commenced Phase IIb clinical trials of plecanatide, a treatment for patients with constipation-predominant irritable bowel syndrome. The trial is being conducted at 70 sites in the U.S. and includes 350 patients. Parexel International (PRXL -2%) is the contract research organization for the trial.
Parexel (PRXL +2.1%) acquires Liquent for $72M. The shares rose after the firm raised 2Q13 revenue guidance to $415M-$420M, GAAP EPS to be in range of $0.31-$0.34 and FY13 revenue of $1.67B-$1.69B and adj. EPS to be in range of $1.36-$1.43. The acquisition is expected to have dilutive impact of $0.02-$0.04 for FY13. (PR)
More on Parexel's FQ2: Though results were only in-line, the company is guiding for FQ3 revenue of $350M-$358M ($334.2M consensus) and EPS of $0.30-$0.32 ($0.23 consensus). In addition, it's guiding for FY12 (ends in June) revenue of $1.36B-$1.375B ($1.36B consensus) and EPS of $1.09-$1.17 ($1.11 consensus). PRXL now +10% AH. (PR)
Shares of Parexel (PRXL +9.3%) jump after the firm raised its FY12 outlook on revenue to $1.36B-$1.4B, from $1.34-$1.38B, and received an upgrade from Jefferies to Hold. Revenue only jumped 5% Y/Y for the firm, but backlogs increased 29% on new business wins.
Parexel (PRXL) has been hard hit today, -5.7% after Goldman Sachs downgrades the stock to Sell from Neutral, citing a lack of visibility, margin pressures, and overly aggressive second-half earnings growth projections.
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.