Interesting news from PRWW this morning:
biz.yahoo.com
Thursday December 16, 8:45 am Eastern Time
Company Press Release
SOURCE: Premier Research Worldwide, Ltd.
Premier Research to Sell Clinical Research Organization (CRO) To SCP
Communications
Sale Continues PRWW Transition to An eResearch Technology and Service Company
PHILADELPHIA, Dec. 16 /PRNewswire/ -- Premier Research Worldwide, Ltd. (Nasdaq: PRWW - news) announced today that it has signed a definitive agreement of sale with SCP Communications, Inc. of New York, NY for PRWW's Clinical Research Organization (CRO) business unit. The business unit will remain in Philadelphia. SCP is a private publishing, communications, and clinical research firm serving the pharmaceutical industry. The transaction will be an $18 million sale of assets and assumption of certain liabilities -- $1 million in December 1999, $8 million to be received in January 2000, with the remainder to be received over two years, subject to adjustments and performance. The sale, which will produce a gain for PRWW, is subject to the customary conditions and is expected to close by December 31, 1999.
In making the announcement, Joel Morganroth, M.D., Chairman and CEO of PRWW, said: ``This sale continues the transformation of PRWW into an eResearch company. Although the CRO business unit diluted our margins over the past three years, it has greatly aided the development of our electronic Research Networks ('eResNets``) concept. Our ability to build eResNets for sponsors, CROs, and site management organizations will allow the industry to use data captured via the web to access clinical information as it is collected from the patient. This speeds analysis and reporting, improving both the safety and quality of clinical research, while reducing development costs. In 2000, we will change our corporate name to signify our transition to an eResearch technology and service company.'
Nancy McKinstry, CEO of SCP Communications, noted, ``We are pleased to expand our services in the clinical research area with the acquisition. The strength of PRWW's data and clinical trial management capabilities will enhance our market position. SCP's strategy is to combine clinical programs, medical education and communications and journal publishing to provide our clients with an integrated solution for launching and marketing health care products. SCP plans to use the name Premier Research of SCP Communications.'
Establishment of eResearch Technology
PRWW recently created eResearchTechnology, a wholly owned Delaware subsidiary (www.eResearchTechnology.com). This subsidiary, funded by PRWW, initially will be the Company's e-technology marketing, development, and application services provider. Its financial performance will be separately disclosed after January 1, 2000 in PRWW's consolidated financial statements.
eResearchTechnology has positioned itself as a provider to all organizations involved in the over $30 billion research and development industry. One of the world's largest pharmaceutical companies has recently adopted PRWW's eResearchTechnology. That company, through the Breast Cancer International Research Group (BCIRG) of Alberta, Canada, will utilize an eResNet to conduct a major trial in 400 sites around the world.
``In 2000-2001, the Company intends to increase its ability to provide eResNets beyond the 400 locations contracted by BCIRG to many more of the world's investigative sites (e.g. site management organizations, university hospitals, pediatric centers, hospital research collaborators, etc.). The Company anticipates that eResearch will become the dominant process for conducting all clinical research worldwide which should expand the Company's leadership position in the field', concluded, Joe Esposito, President and COO of PRWW.
Based in Philadelphia, PA, PRWW is a leading eResearch technology and service provider. PRWW believes it is also the market leader in providing centralized core-diagnostic electrocardiographic services globally. The Company's Internet e-nabled clinical research software is a complete end-to-end product solution, created through the application of science, process, and technology. The Company's full suite of eResearch products may be deployed via a purchase plan or a transaction fee. By allowing its customers to access and analyze global clinical data and manage trials in real-time, PRWW's software products assist in detecting study problems earlier, allowing users to make earlier strategic decisions, which in turn accelerates final study reports and regulatory review. The Company estimates that its products can help shorten the time it takes to bring new drugs to market, maximizing potential revenues and improve the quality of the research process.
Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the Company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results can be found in the Company's Registration Statement of Form S-1 and in its Reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission (SEC).
SOURCE: Premier Research Worldwide, Ltd. |
