UCB announced that it entered into strategic partnerships in clinical development with Parexel and PRA, two globally active contract service organizations.
The agreements are effective for all of UCB’s new clinical study programs on a global basis.
Our view:
The strategic partnerships are expected to provide UCB with increased productivity, cost effectiveness and access to innovation in clinical trial development. Moreover, it should expedite development, reduce complexity and ensure continuous improvement.
Moreover, UCB considers Parexel en PRA as integrated members of the UCB development team and sees the partnership as possibility to expand its global drug development activities into Asia.
Many pharma companies have strong ties and heavily rely on contract research/service organization for the management of their clinical studies. As such, this type of outsourcing model is well-established, and by strengthening the connection with leading players in the field, UCB is adopting to what we believe are (or will become) standard practices for those involved in drug development.
Conclusion:
No changes to rating or target price.