Clinical Data Acquires Epidauros Biotechnologie AG, Significantly Enhancing Proprietary Genetic Biomarker Portfolio
Genetic Biomarker Portfolio to Have Important Role in Targeted Drug Development, Dosing Determination, and Pharmacogenetic Testing
Purchase Expands European Presence, Advances PGxHealth Test Commercialization and Broadens Geographic Reach of Cogenicsâ€™ Pharmacogenomics Services
NEWTON, Mass. â€“ August 23, 2007 â€“ Clinical Data, Inc.Â announced today that it has acquired privately held Epidauros Biotechnologie AG of Bernried, Germany, in a cash transaction valued at 8.75 million euros (or approximately $11.84 million). Epidauros brings to Clinical Data an established portfolio of proprietary genetic biomarkers, expertise in genetic biomarker discovery, relationships with leading diagnostic companies, and a fast-growing pharmacogenomics services business.
Among the strategic assets acquired by Clinical Data in the transaction is a significant intellectual property portfolio that includes biomarkers in genes relating to prominent drug transporters such as MDR11, OCT12, MRP13, and important cytochrome P450 drug metabolizing genes, such as CYP2B64 and CYP2D65. MDR1 encodes P-glycoprotein, a key protein involved in drug transport that is known to modulate drug disposition. In addition, the genes CYP2B6, OCT1, and MRP1 are implicated in the absorption, distribution, and metabolism of many drugs that span a variety of therapeutic classes and indications, and are likely to be important in both response and safety profiles for these drugs.
Clinical Dataâ€™s President and CEO, Drew Fromkin, said, â€œWe are pleased to have completed this highly strategic transaction, which we believe will enhance Clinical Dataâ€™s ability to bring valuable, proprietary pharmacogenetic tests to market. Epidaurosâ€™ intellectual property portfolio holds great promise in critical areas related to drug transport and distribution. In turn, these genetic markers should play a significant role in better understanding drug response in individuals.â€
â€œThe acquisition of Epidauros also brings to us the assets, know-how, and staff for which Epidauros is so well-respected. In particular, Epidauros will provide Clinical Data with additional scientific expertise, biotechnology partnering capabilities and a deep understanding of European clinical markets. Epidauros has grown its pharmacogenetic services business in support of the pharmaceutical and biotechnology industries and earned a reputation for excellence throughout Europe and the US. We expect the capabilities of Epidaurosâ€™ laboratories to complement those of Clinical Data and to contribute a strong local presence in the important German market. With our operations in the UK and France, this transaction provides Clinical Data with laboratories in three top European markets.â€
To further advance the combined abilities of the two companies and to expand Clinical Dataâ€™s clinical testing and targeted therapeutics programs, Michael Lutz, Ph.D., the current CEO of Epidauros, has agreed to join PGxHealth as the Senior Vice President of Pharmacogenetic Partnerships. Dr. Lutz commented, â€œWe welcome the opportunity to become a part of Clinical Data and are excited to join forces and work toward building the worldâ€™s leading pharmacogenetic enterprise. At Epidauros, we are proud of our history of innovation and our track record with respect to providing pharmacogenetic solutions to many partners. We can now further leverage Epidaurosâ€™ and Cogenicsâ€™ support of pharmaceutical trials with our leading pharmaceutical clients. Together, the companies have supported more than 1,000 clinical trials over the past several years. Moreover, the combination of Clinical Dataâ€™s and our expertise and intellectual property will greatly enhance the collective ability of the companies to develop companion diagnostics to guide drug development and prescribing.â€
"This acquisition parallels what has been happening in the pharmaceutical industry for many years and should be regarded as being highly positive,â€ said Professor Munir Pirmohamed, Professor of Clinical Pharmacology at The University of Liverpool. â€œIt combines the forces of two well-known companies in this field and provides the infrastructure and expertise to improve the evidence base that is needed to incorporate pharmacogenetic diagnostics into clinical practice. I collaborate with both companies as academic-industrial collaborations are important in keeping with the research strategies of most governments and are ultimately needed to show the clinical validity and utility of pharmacogenetics for the management of expensive and complex disease areas. Hence, genes for drug transporters, such as MDR1 and OCT1 will prove to be as important as the Cytochrome P450 system in determining plasma and tissue levels of drugs, and thereby the efficacy and toxicity of drugs in disease areas including but not limited to oncology, cardiology, CNS, metabolic, and inflammatory diseases and pain."
About Clinical Data, Inc.
Clinical Data, Inc. is a global biotechnology company unlocking the potential of molecular discovery, from targeted science to better healthcare. Its PGxHealth division focuses on genetic test and biomarker development to help predict drug safety and efficacy, thereby reducing health care costs and improving clinical outcomes. Its Cogenics division provides molecular and pharmacogenomics services to both research and regulated environments. Its Vital Diagnostics division offers in vitro diagnostics solutions for the clinical laboratory. Through these divisions, Clinical Data is leveraging advances in molecular discovery to provide tangible benefits for patients, doctors, scientists and health plans worldwide. Visit the companyâ€™s website at www.clda.com for more information.
About Epidauros (www.epidauros.com)
Epidauros investigates the genetic factors that influence a person's response to a drug and makes drug development and therapy safer, more efficient and more predictive. The company has established itself as a worldwide leading Pharmacogenetic Research Organization (PRO) providing innovative, integrated and value-added solutions to an international customer base consisting of pharmaceutical companies, CROs and other companies acting in the field of health care. Thanks to the pharmacogenetic expert knowledge of its qualified scientific team, Epidauros is a competent partner for contract research to reveal new pharmacogenetic targets and polymorphisms that impact drug response. In addition, Epidauros has brought together a network of competent partners to do research and has established its own intellectual property base in the field. The company is located in Bernried near Munich and was founded as a pioneering company in the field of pharmacogenetics in 1997.
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This press release contains certain forward-looking information about Clinical Data that is intended to be covered by the safe harbor for â€œforward-looking statementsâ€ provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. Words such as â€œexpect(s),â€ â€œfeel(s),â€ â€œbelieve(s),â€ â€œwill,â€ â€œmay,â€ â€œanticipate(s)â€ and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding: our ability to successfully integrate the operations, business, technology and intellectual property obtained in our acquisitions; our ability to obtain regulatory approval for, and successfully introduce our new products; our ability to expand our long-term business opportunities; our ability to maintain normal terms with our customers and partners; financial projections and estimates and their underlying assumptions; and statements regarding future performance. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: whether our PGxPredictâ„¢ tests will gain wide acceptance in the market; the extent to which genetic markers (haplotypes) are predictive of clinical outcomes and drug efficacy and safety; our ability to achieve the expected synergies and operating efficiencies from all of our acquisitions; the strength of our intellectual property rights; competition from pharmaceutical, biotechnology and diagnostics companies; the development of and our ability to take advantage of the market for pharmacogenetic and biomarker products and services; general economic downturns; and other risks contained in our various SEC reports and filings, including but not limited to our Annual Report on Form 10-K for the fiscal year ended March 31, 2007, our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2007, and our Current Reports on Form 8-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.