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PRA Health Launches PSN to Expand in Pediatric Care, Stock Up

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PRA Health Sciences, Inc. recently launched Pediatric Site Network (PSN) — a series of key pediatric research centers which will allow PRA Health to improve pediatric clinical development around the world. It will also improve access to novel pediatric medicines. The latest move is likely to drive the company’s Center for Pediatric Clinical Development.

Following the announcement, shares of PRA Health rose 2% to $105.03 at close. The stock carries a Zacks Rank #2 (Buy).

PRA Health has also strengthened its relationship with research centers in the EU and Israel and also plans to expand PSN to Latin America and Asia Pacific.

Center for Pediatric Clinical Development

In 2017, the North Carolina-based contract research organization launched Center for Pediatric Clinical Development. The center has highly skilled experts in pediatric clinical trial design and implementation. The PSN is expected to inform and assist the center’s approach to pediatric trials.

This will enhance PRA Health’s ability to work with sponsors to design and execute more efficient and patient-friendly pediatric studies.

Why is Pediatric Clinical Trial Important?

Prescribed drugs can often be dangerous for children. This is because safety and efficacy data of these drugs are surprisingly scarce. Hence, better and more relevant clinical trials are needed to increase the knowledge of the effects of medicines in children.

IQVIA Holdings Inc. (IQV - Free Report) is also a key player in the Pediatric Clinical Trial market. The company has a deep domain expertise in pediatric research and is a leader in pediatric drug development.

Market Prospects

Mordor Intelligence expects the global pediatric clinical trials market to see a CAGR of 14.5% between 2018 and 2023.

Thus, the latest development has been a well-timed one for PRA Health.

Price Performance

We believe positive developments such as these are likely to boost the company’s shares, which have rallied 27% compared with the industry's 39.4% rise. The current level is higher than the S&P 500 index’s 1.6% rally.

Other Key Picks

Other top-ranked stocks in the broader medical space are Veeva Systems (VEEV - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .

Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2.

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