The U.S. may be the biggest drug market in the world, but the pharmaceutical business has long been global in scope. For drugmakers, regulatory clearance in the U.S. is usually the first priority, but Europe and Asia are often close seconds. Further, testing drugs abroad may be cheaper than doing so in the U.S. As a result, clinical trials for experimental drugs are often conducted in a number of countries.
Contract research services provider PAREXEL International
Even with the reduction in U.S. expenses, the company's domestic business may still be resting on a weak foundation. PAREXEL is experiencing intense competition for contracts with pharmaceutical giants such as Inside Value pick Pfizer
For PAREXEL, reliance on biotechs and smaller pharma firms could pose new problems. While lesser-known players can certainly grow into successful companies and long-term clients, it's important to note that for every Amgen
Fool contributor Brian Gorman is a freelance writer in Chicago. He does not own shares of any companies mentioned in this article.
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