BURLINGTON, Mass., July 14, 2011 /PRNewswire/ -- inVentiv Health, offering best-in-class clinical, commercial, and consulting services to the healthcare industry, today announced it has completed the acquisition of PharmaNet Development Group, Inc., a recognized leader of global drug development services to the pharmaceutical, biotechnology, generic drug, and medical device industries. Financial terms of the transaction were not disclosed.
The acquisition makes inVentiv one of the top contract research organizations (CRO) worldwide, with clinical segment annual revenue of $900 million and more than 6,000 employees dedicated to clinical research in nearly 40 countries, including growth markets in Asia, Latin America, and central and eastern Europe. Overall, inVentiv Health will have annual revenues of nearly $2 billion and more than 13,000 employees worldwide across its three business segments: Clinical, Commercial, and Consulting.
"Growth in the CRO marketplace is fueled by pharmaceutical and biotech clients who are looking to gain flexibility and efficiency through outsourcing," said Paul Meister, Chief Executive Officer of inVentiv Health. "inVentiv is well positioned to serve the diverse needs of the marketplace -- from smaller biotechs to the largest global enterprises, at any stage of clinical development, anywhere in the world."
inVentiv's Clinical segment offers a full suite of services that support bioanalysis, Phase I (first-in-human) studies and Phase II through Phase IV (post-launch) clinical trials. It offers those services across an array of therapeutic areas, including oncology, neuroscience/pain, rheumatology, infectious disease, cardiovascular, endocrinology, and metabolic disease. Depending on client need, inVentiv can manage a completely outsourced clinical trial, or it can provide functional support to in-house trials in such areas as clinical trial management and monitoring, data management, biostatistics solutions, regulatory consulting, safety and pharmacovigilance, and patient and investigator recruitment.
Jeffrey P. McMullen, Chief Executive Officer of PharmaNet, who will lead inVentiv's Clinical segment said: "PharmaNet employees are excited to join forces with inVentiv. As we think about our expanded capabilities, one thing won't change: our focus on servicing customers. Our combined organizations offer clients expanded global resources and scale, a broad suite of outsourced services, extensive therapeutic expertise, and a proven track record of high quality work."
PharmaNet is inVentiv's third acquisition in 2011. In February, inVentiv added Campbell Alliance to its Consulting segment. In June, the company acquired i3, another leading CRO. inVentiv is organized in three segments aligned with how customers purchase clinical, commercial, and consulting services. The company's cross-functional, global expertise positions it as the partner of choice for clients developing new compounds, creating winning business strategies or bringing products to market anywhere in the world.
Meister added, "We now have an unparalleled depth and breadth of expertise and services to accelerate performance for pharmaceutical, biotechnology, and medical device companies by bringing promising ideas to commercial reality."
BofA Merrill Lynch, Citi and Jefferies Finance LLC provided financing commitments to inVentiv Health to support the transaction. In connection with the transaction, Ropes & Gray LLP acted as legal advisor to inVentiv Health, Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to PharmaNet, Jefferies & Company, Inc. and UBS Securities, LLC acted as financial advisors to PharmaNet, and Jefferies & Company, Inc. acted as financial advisors to JLL Partners.
PharmaNet Development Group, Inc., a recognized leader of global drug development services to the pharmaceutical, biotechnology, generic drug, and medical device industries, provides comprehensive capabilities in Phase I-IV clinical development, bioanalytical and bioequivalence services, regulatory, staffing, and therapeutic solutions. For the applied knowledge and intelligent solutions needed to accelerate drug development programs of all sizes around the world. For more information, please visit www.PharmaNet.com.
About inVentiv Health
inVentiv Health, Inc. is a leading global provider of best-in-class clinical, commercial and consulting services to companies seeking to accelerate performance. InVentiv's client roster includes more than 550 pharmaceutical, biotech and life sciences companies. With 13,000 employees in 40 countries, inVentiv rapidly transforms promising ideas into commercial reality. InVentiv Health Inc. is privately owned by inVentiv Group Holdings Inc., an organization sponsored by affiliates of Thomas H. Lee Partners, L.P., Liberty Lane Partners and members of the inVentiv management team. For more information, visit www.inventivhealth.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks that may cause inVentiv Health's performance to differ materially. Such risks include, without limitation: our ability to sufficiently increase our revenues and maintain or decrease expenses and cash capital expenditures to permit us to fund our operations; our ability to continue to comply with the covenants and terms of our credit facility and to access sufficient capital to fund our operations; our ability to grow our existing client relationships, obtain new clients and cross-sell our services; our ability to successfully operate new lines of business; our ability to manage our infrastructure and resources to support our growth; our ability to successfully identify new businesses to acquire, conclude acquisition negotiations and integrate the acquired businesses, including the acquisitions of i3 and PharmaNet Development Group, Inc., into our operations; any disruptions, impairments, or malfunctions affecting software as well as excessive costs or delays that may adversely impact our continued investment in and development of software; the potential impact of government regulation on us and on our clients base; our ability to comply with all applicable laws as well as our ability to successfully implement from a timing and cost perspective any changes in applicable laws; our ability to recruit, motivate and retain qualified personnel, including sales representatives; the actual impact of the adoption of certain accounting standards; our ability to maintain technological advantages in a variety of functional areas, including sales force automation, electronic claims surveillance and patient compliance; and changes in trends in the healthcare and pharmaceutical industries or in pharmaceutical outsourcing. Readers of this press release are referred to documents filed from time to time by inVentiv Health Inc. with the Securities and Exchange Commission for further discussion of these and other factors.
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