Parexel sees biotech funding recovery fuel growth; India emerges as key GCC and pharma market

The latest market report highlights that Parexel is betting on a recovery in biotech funding to drive its next phase of expansion, while expanding its presence in India as both a global capability centre (GCC) and a commercial market, Chief Operating Officer Rob Goodwin stated.

The US-based global clinical research organisation is seeing renewed momentum across the biotechnology sector after a prolonged slowdown triggered by the Covid pandemic, tighter funding conditions and geopolitical uncertainties. According to Goodwin, fresh capital is flowing back into the sector, helping biotech firms revive development pipelines and resume investments in new drug candidates.

“We are seeing high single-digit to double-digit expansion now in the biotech space,” Goodwin told Moneycontrol. “Funding is available. You are seeing more IPOs and more opportunities for investment. It is a great time right now to be in this industry.”

Goodwin stated biotech firms have emerged from a period of pipeline rationalisation with stronger assets and clearer priorities. “What you're seeing is new medicines coming through the pipeline and a reprioritised pipeline. You see less cancellations because candidates now have a elevated probability of regulatory and technical success,” he stated.

According to rating agency S&P Global, Parexel has roughly $4.8 billion of topline in 2025.

Biotech already accounts for around 56 percent of Parexel's business and stays one of the firm's key expansion drivers. The firm employs around 22,000 people globally, with India becoming increasingly central to its operations.

“India in particular is seeing massive expansion,” Goodwin stated. “India is already around a third of our employees. We are able to run global studies from India, supported by a highly educated scientific and technology workforce.”

India at present houses more than 6,200 Parexel employees and has become a strategic delivery centre for global clinical research programmes. The firm recently enhanced its technology capabilities through the acquisition of Vitrana, bringing in 126 employees and strengthening its ability to offer technology-enabled services to pharmaceutical and biotechnology clients.

Sanjay Vyas, Managing Director of India and President of Patient Safety Services and Clinical Logistics at Parexel, stated the firm anticipates its India operations to continue expanding rapidly.

“The impact of optimisation in India was less than 1 percent, and that turned around with expansion,” Vyas stated. “We are actually on a trajectory of expansion. I won't be surprised if by 2030 we'll be 8,000-plus here in India.”

Apart from serving global clients, Parexel is additionally seeing stronger demand from Indian pharmaceutical and biotechnology firms. Clinical trial activity in the country has been rising steadily, supported by regulatory reforms and government initiatives aimed at strengthening India's research ecosystem.

“We have noted an upward trend,” Vyas stated. “Clinical trial applications have gone from around 80 to more than 200 in the last five years.”

According to Vyas, biosimilars keep dominate India's clinical development landscape, but drugmakers are increasingly investing in innovative therapies. “We have noted Indian biopharma firms developing new chemical entities in respiratory, ophthalmology and infectious diseases,” he stated.

Interest is additionally growing in advanced areas such as cell and gene therapy, reflecting a broader shift among Indian pharmaceutical firms from copying existing products to developing innovative medicines.

Vyas stated government initiatives such as the proposed Rs 10,000 crore Bio-Shakti programme, which include efforts to create 1000 certified clinical trial sites could further strengthen India's position in global drug development.

“India is at a beautiful cusp of transformation,” Vyas stated. “The government knows this and is absolutely pushing for it. The opportunity now is not only to bring more clinical trials to India but additionally to become a larger part of global drug development.”