Companies to Sign Multi-Year Marketing Agreement, Phase Forward to Become Covance's Preferred Solution Provider for Electronic Data Capture and IVRS/IWRS
WALTHAM, Mass.--(BUSINESS WIRE)--Jul. 15, 2009-- Please note the revised Cautionary Statement paragraph.
The corrected release reads:
PHASE FORWARD AGREES TO ACQUIRE COVANCE'S INTERACTIVE VOICE AND WEB RESPONSE SERVICES BUSINESS
Companies to Sign Multi-Year Marketing Agreement, Phase Forward to Become Covance's Preferred Solution Provider for Electronic Data Capture and IVRS/IWRS
Phase Forward (NASDAQ: PFWD), a leading provider of data management solutions for clinical trials and drug safety, today announced that it has signed an agreement to purchase the Interactive Voice & Web Response Services (IVRS/IWRS) business of Covance Inc. (NYSE: CVD) for $10 million in cash. As part of this transaction, Phase Forward and Covance have also agreed to enter into a multi-year marketing agreement to provide Phase Forward's market leading InFormTM electronic data capture (EDC) solution and ClarixTM interactive response technology solution to Covance clients.
Phase Forward expects the purchase, which is subject to customary closing conditions, to be completed by the end of August.
"Covance and Phase Forward are committed to working together to deliver best-of-class solutions to our clinical trial customers," said Bob Weiler, chairman and CEO of Phase Forward. "Covance has been a pioneering leader in the IVRS/ IWRS market and we look forward to building upon their success. We are also pleased to solidify our long-term strategic relationship with one of the world's leading and most successful CROs."
"Covance remains fully committed to providing our clients with integrated drug development solutions, including advanced technology for supporting clinical trials," said Joe Herring, chairman and CEO of Covance. "We are delighted to broaden our relationship with Phase Forward, our preferred provider of EDC software for clinical trials, to include market leading IVRS/IWRS technology for clinical trials. We believe our clients will benefit from Phase Forward's integrated data management platform and Covance's integrated clinical trial solutions."
Additional financial details and the projected financial impact of the Covance transaction will be provided on July 27, 2009, when Phase Forward releases its second quarter 2009 results, as well as third quarter and full year 2009 guidance.
About Covance
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with annual revenues greater than $1.7 billion, global operations in more than 25 countries, and more than 9,800 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through its website at www.covance.com.
About Phase Forward
Phase Forward is a leading provider of integrated data management solutions for clinical trials and drug safety. Phase Forward's products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 290 organizations and regulatory agencies worldwide including: AstraZeneca, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, the U.S. Food and Drug Administration, GlaxoSmithKline, Harvard Clinical Research Institute, Merck Serono, Novartis, Novo Nordisk, PAREXEL International, Procter & Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute, Servier, Tibotec and the U.K. Medicines and Healthcare Products Regulatory Agency. Additional information about Phase Forward is available at www.phaseforward.com.
Cautionary Statement
Certain statements made in this press release that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements relating to, among other things, Phase Forward's expectations and assumptions concerning financial performance of Phase Forward following the consummation of its acquisition of [Covance's IVRS/IWRS business], Phase Forward's ability to achieve expected synergies as a result of the acquisition, the strengthening of Phase Forward's market position as a result of the acquisition, the ability of the parties to satisfy the conditions to closing, and the expected timing for closing the acquisition. The closing of the acquisition is subject to various risks, including the risk that conditions to the closing are not satisfied when required. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond Phase Forward's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things, Phase Forward's inability to successfully integrate [Covance's IVRS/IWRS business] and its employees into Phase Forward and achieve expected synergies; Phase Forward's ability to accurately forecast the acquisition-related restructuring costs and allocation of the purchase price, goodwill and other intangibles, and acquisition related and other asset adjustments; costs associated with and consequential to the acquisition and integration of [Covance's IVRS/IWRS business] and benefits realized from the acquisition; Phase Forward's ability to convince prospective customers to adopt its solutions; competition; changing customer requirements; governmental regulation; fluctuations in Phase Forward operating results; our dependence on a limited number of customers or suppliers; product performance; third party service interruptions or delays; technology failures; our ability to maintain customer relationships and contracts; product liability or intellectual property infringement claims brought against us; acquisitions; and the volatility of the market price of our common stock. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Phase Forward undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For additional disclosure regarding these and other risks faced by Phase Forward, see the disclosure contained in Phase Forward's public filings with the Securities and Exchange Commission including, without limitation, its most recent Annual Report on Form 10-K.