Pharmaceutical research contractor Parexel International Corp. said Thursday it will start a five-year partnership with Pfizer Inc., the world's biggest drugmaker.
Parexel said the partnership begins in June and will be implemented over the next 18 months to two years. Parexel's work is intended to help speed up drug research and make it more cost-effective, while Pfizer is looking for ways to reduce its spending and improve its success in developing new drugs. Research service companies like Parexel have struggled during the economic downturn as large drugmakers have canceled or delayed expensive clinical trials.
Earlier this month, Parexel said it would restructure its early-stage clinical research business because of disappointing results.
The companies did not disclose financial terms of the agreement, but Parexel said that on Wednesday, it will update its guidance to reflect the agreement. The company said it is one of two companies Pfizer selected for clinical development research services.
In morning trading, Parexel shares rose 93 cents, or 3.9 percent, to $24.59. Pfizer shares fell 15 cents to $20.63.