Durham County, State Officials Announce Parexel International Bringing Headquarters to RTP
Clinical Research Organization will add up to 264 jobs
Durham, NC – Durham County Government leaders joined with North Carolina Commerce Secretary Anthony M. Copeland on Thursday, May 30, 2019, at the Durham County Administration Building II to officially announce that Parexel International, LLC, will bring a second headquarters in Durham County with up to 264 new jobs being created.
Parexel, headquartered in Waltham, Mass., is a biopharmaceutical service organization that provides a range of knowledge-based contract research and medical communications services. The company conducts clinical trials on behalf of its pharmaceutical clients to expediate the drug approval process. It is the second largest clinical research organization in the world and has helped develop approximately 95 percent of the 200 top-selling biopharmaceuticals on the market today.
"North Carolina’s global leadership in clinical research continues to attract the world’s leading life science companies,” North Carolina Governor Roy Cooper said in a release. “We’re pleased that Durham’s talented workforce will support Parexel’s next phase of job growth and development.”
The new employees will join Parexel’s more than 600 existing employees in North Carolina, expanding on operations in the state dating back to 1993.
“North Carolina invented the contract research organization model, an innovation that revolutionized the process of drug discovery and development,” Copeland said. “I’m pleased that one of the world’s largest CROs will now locate its second U.S. headquarters in our state, taking advantage of the world-class talent and educational resources available here.”
The company will invest $1.68 million in North Carolina as it locates certain headquarter functions from Massachusetts to Durham to support global operations including: human resources, finance, IT, legal and marketing. Parexel International Corporation Limited, a wholly-owned subsidiary of United Kingdom-based West Street Holdings III Limited with approximately 20,000 employees worldwide, provides a comprehensive suite of biopharmaceutical research and services to help its customers transform scientific discoveries into new treatments for patients. From clinical trials to regulatory and consulting services to commercial and market access, the company’s therapeutic, technical and functional ability is underpinned by a deep conviction in improving patient health.
“The talent pipeline we’ve been able to attract to our Durham operation as a result of the strong life sciences presence in the region has been outstanding, making it the ideal location to help fuel our future growth,” said Parexel CEO Jamie Macdonald. “We look forward to our expansion here, accelerating the development of innovative new therapies for patients and providing career development opportunities for employees in this rewarding field.”
The 264 new jobs in Durham County will be created over a four-year time frame. The average wage of the new jobs will be $110,511, well above the current County average of $68,731. That equates to a $29.4 million payroll impact for the local economy.
“Durham County is pleased to offer its support of this great opportunity for Durham residents,” BOCC Chair Wendy Jacobs said. “Parexel is the second largest Clinical Research Organization in the world and we are thrilled that they have chosen to make Durham County their second global headquarters. Durham has a rich talent pipeline with our great local universities and community college and we look forward to Durham workers benefiting from these excellent jobs.”
This expansion will be facilitated by a $4,194,000 Job Development Investment Grant (JDIG) approved by the North Carolina Economic Investment Committee earlier in the day. Over the course of the 12-year term of the grant, the project will grow the state’s economy by an estimated $869 million, according to the N.C. Department of Commerce. Over the 12 years, the JDIG agreement authorizes the potential reimbursement to Parexel of $1,398,000 using a formula that considers new tax revenues generated by the new jobs. This payment only occurs after the company meets its job creation and investment targets.
The Durham County Board of Commissioners has tentatively agreed to an award of $120,500 in incentives for Parexel as part of the required JDIG local match. The BOCC will hold a public hearing and vote on the award at the next Regular Session on Monday, June 10, 2019. Other partners on this project were Economic Development Partnership of North Carolina, North Carolina General Assembly, the North Carolina Biotechnology Center and the Greater Durham Chamber of Commerce.
Jacobs was among speakers at the event. Other speakers at the celebration included Copeland, Macdonald and Geoff Durham, President and CEO, Greater Durham Chamber of Commerce. Others in attendance included BOCC Vice Chair James Hill, Commissioners Heidi Carter, Ellen Reckhow and Brenda Howerton, County Manager Wendell Davis and Durham County Economic Development Officer Andy Miracle.