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Kforce Clinical Research (KFRC) to Sell Clinical Research Business for $50 Million Cash


3/19/2012 7:26:55 AM

BURLINGTON, Mass., March 19, 2012 /PRNewswire/ -- inVentiv Health, Inc., offering best-in-class clinical, commercial and consulting services to the healthcare industry, today announced that it has signed a definitive agreement to acquire Kforce Clinical Research, Inc. ("KCR"), a provider of functional outsourcing solutions to pharmaceutical, biotech and medical device companies, from Kforce Inc. for $50 million in cash.

KCR will be combined with inVentiv's existing functional service provider (FSP) and staffing businesses within the Clinical segment, expanding inVentiv's position as a leader in functional outsourcing and CRO services. With more than 30 years of experience and a broad portfolio of partners worldwide, the combined organization will leverage inVentiv Health's global reach, enabling the company to meet clients' strategic resourcing needs in more than 40 countries around the world.

"With its strong clinical monitoring expertise, a customer-focused approach and an impressive portfolio of clients, Kforce Clinical Research is an attractive complement to inVentiv's existing services. This acquisition expands our capability across the continuum of FSP, staffing and CRO services, further enhancing our ability to deliver flexible, cost-effective solutions for our clients," said Paul Meister, CEO of inVentiv Health.

KCR's range of clinical services include: site management and monitoring, clinical project and program management, clinical programming and data management, biostatistical analysis and reporting, pharmacovigilance, medical writing, regulatory affairs, and quality assurance and training. inVentiv anticipates adjusted annualized revenue of approximately $70 million, which reflects the previously disclosed contract loss by KCR and anticipated wins and contract expansion.

The transaction is expected to close at the end of March 2012.


inVentiv Health also announced today that the Federal Trade Commission has approved its acquisition of SDI Health promotional and medical audit businesses from IMS Health. inVentiv expects to close the transaction this week. The syndicated offerings of the acquired businesses will be combined with the market research capabilities of Campbell Alliance, an inVentiv Health company and the leading management consulting firm specializing in the pharmaceutical and biotech industry.

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 http://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 our performance to differ materially. These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from those expressed in any forward-looking statement. Such factors include, without limitation: the impact of our substantial level of indebtedness on our ability to generate sufficient cash to fulfill our obligations under our existing debt instruments or our ability to incur additional indebtedness; the impact of the consummation of any announced and future acquisitions and our ability to achieve the anticipated KCR revenue described in this release; the impact of any additional leverage we may incur in connection with the financing of acquisitions, on our ratings and the ratings of our debt securities; 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 senior secured credit facilities and to access sufficient capital under our credit agreement or from other sources of debt or equity financing to fund our operations; the impact of any default by any of our credit providers; our ability to accurately forecast costs to be incurred in providing services under fixed price contracts; our ability to accurately forecast insurance claims within our self- insured programs; the potential impact of pricing pressures on pharmaceutical manufacturers from future healthcare reform initiatives or from changes in the reimbursement policies of third-party payers; our ability to grow our existing client relationships, obtain new clients and cross-sell our services; the potential impact of financial, economic, political and other risks, including interest rate and exchange rate risks, related to conducting business internationally; 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 into our operation, and the resulting synergies; the resolution of purchase price adjustment disputes in connection with our recent acquisitions and related impacts; 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 client 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 possibility that client agreements will be terminated or not renewed; any potential impairment of goodwill or intangible assets; consolidation in the pharmaceutical industry; changes in trends in the healthcare and pharmaceutical industries or in pharmaceutical outsourcing, including initiatives by our clients to perform services we offer internally; the impact of customer project delays and cancellations; the potential liability associated with bringing new drugs to market, including potential liability from injury to clinical trial participants; the actual impact of the adoption of certain accounting standards; and our ability to maintain technological advantages in a variety of functional areas, including sales force automation, electronic claims surveillance and patient compliance. Holders of our debt instruments are referred to reports provided to investors from time to time and the offering memorandums provided in connection with the issuance of our senior secured notes for further discussion of these risks and other factors.

SOURCE inVentiv Health, Inc.


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