Encorium Group, Inc. Announces $1.6 Million Contract for a Phase 2 Trial of an Innovative Immunotherapeutic Vaccine for the Treatment of Hypertension
WAYNE, Pa.--(BUSINESS WIRE)--Encorium Group, Inc. (Nasdaq: ENCO), a full-service multinational contract research organization (CRO) that provides design, development, and management capabilities for clinical trials and patient registries for many of the world's leading pharmaceutical and biotechnology companies today announced the signing of a $1.6 million contract with Protherics, a leading UK biopharmaceutical company, for a Phase 2 trial of its novel immunotherapeutic vaccine, Angiotensin Therapeutic Vaccine (ATV), for the treatment of hypertension.
Encorium will be utilizing its internal resources in Europe and North America to assist Protherics with program consulting, project management, site management and monitoring, data management, oversight of the Data Monitoring Committee, and end-of-study medical report writing. Encorium has been working with Protherics since the end of 2007 in designing and writing the protocol for the forthcoming study. As is our usual practice, revenue recognition will be taken on a proportional performance basis over the life of the contract as services are performed.
Kenneth M. Borow, M.D., Encorium Groupâ€™s President and Chief Medical and Strategic Development Officer commented, â€œEncorium has identified the field of immunotherapy as a particularly robust growth area for the biopharmaceutical industry in the future, and Prothericsâ€™ ATV program as an exciting opportunity. ATV is designed to instruct the patientâ€™s immune system to produce a specific antibody response to angiotensin, a signaling molecule that is associated with hypertension. The therapeutic vaccine approach to treating chronic medical conditions has multiple potential advantages over existing therapies. For example, many people are not compliant with taking pills every day for the rest of their lives and thus more than 50% of patients do not take their medications as prescribed. An effective and safe immunotherapeutic vaccine for hypertension could significantly improve patient compliance with medical therapy as well as help curtail global healthcare costs while positively impacting a variety of confounding social factors.â€
Kai Lindevall, M.D., Ph.D., Encoriumâ€™s Chief Executive Officer stated, â€œThe current contract gives Encorium the opportunity to work with a new client on the development of an exciting and innovative immunotherapeutic agent that lies at the interface between two of our greatest therapeutic area of strengths â€“ cardiovascular disease and vaccines. This contract is the second in a series of new business awards that our Company expects to announce over the next several weeks.â€
About Encorium Group, Inc.
Encorium Group, Inc. is a global clinical research organization specializing in the design and management of complex clinical trials and Patient Registries for the pharmaceutical, biotechnology and medical device industries. The Companyâ€™s mission is to provide its clients with high quality, full-service support for their biopharmaceutical and medical device development programs. Encorium offers therapeutic expertise, experienced team management and advanced technologies. The Company has drug and biologics development as well as clinical trial experience across a wide variety of therapeutic areas such as infectious diseases, cardiovascular, vaccines, oncology, diabetes endocrinology/metabolism, gene therapy, immunology, neurology, gastroenterology, dermatology, hepatology, womenâ€™s health and respiratory medicine. Encorium believes that its expertise in the design of complex clinical trials, its therapeutic experience and commitment to excellence, and its application of innovative technologies, offer its clients a means to more quickly and cost effectively move products through the clinical development process. Encorium is headquartered in Wayne, Pennsylvania with its European base of operations in Espoo, Finland. The Company has a geographic footprint that includes over one billion people in North America, Western/Central/Eastern Europe, Scandinavia, and the Baltics.
This press release contains forward-looking statements identified by words such as â€œestimate,â€ â€œproject,â€ â€œexpect,â€ â€œintend,â€ â€œbelieve,â€ â€œanticipateâ€ and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Potential risks and uncertainties that could affect the Company's future operating results and financial condition include, without limitation: (i) our success in attracting new business and retaining existing clients and projects; (ii) the size, duration, and timing of clinical trials we are currently managing may change unexpectedly; (iii) the termination, delay or cancellation of clinical trials we are currently managing could cause revenues and cash-on-hand to decline unexpectedly; (iv) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (v) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (vi) the ability to maintain profit margins in a competitive marketplace; (vii) our ability to attract and retain qualified personnel; (viii) the sensitivity of our business to general economic conditions; (ix) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices; (x) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties;(xi) our backlog may not be indicative of future revenues and may not generate the revenues expected;(xii) our ability to successfully integrate the businesses of Encorium and Remedium Oy which we acquired on November 1, 2006; and (xiii) the performance of the combined business to operate successfully and generate growth. You should not place any undue reliance on these forward looking statements which speak only as of the date of this press release. Additional information concerning factors that might affect our business or stock price which could cause actual results to materially differ from those in forward-looking statements is contained in Encorium Group's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2006 and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Encorium Group's investor relations department or The Equity Group, Inc.
Protherics (LSE: PTI, NASDAQ: PTIL) is a leading UK biopharmaceutical company focused on the development, manufacture and marketing of specialised products for critical care and cancer.
Protherics has two marketed products which helped generate revenue of Â£31.1 million in the financial year ended 31 March 2007. This important revenue stream helps fund the advancement of the Companyâ€™s valuable late stage pipeline which includes six programmes which are expected to be in phase 2 development in 2008. Protherics has a strong balance sheet with cash of Â£46.9 million at the half year ending 30 September 2007.
With headquarters in London, the Company has approximately 290 employees across its operations in the UK, US and Australia.