inVentiv Health to Acquire PharmaNet, Inc. as the CRO Consolidation Game Continues
Published: May 18, 2011
BURLINGTON, Mass., May 17, 2011 /PRNewswire/ -- inVentiv Health, offering best-in-class clinical, consulting and commercial services to the healthcare industry, today announced it has signed a definitive agreement to purchase PharmaNet Development Group, 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.
With the addition of PharmaNet, inVentiv will extend its global presence to nearly 40 countries and greatly enhance both its early- and late-stage clinical development capabilities. In conjunction with its previously announced agreement to acquire i3, another leading contract research organization (CRO), inVentiv Health will be one of the world's top CROs and position the Company for accelerated growth in the $21 billion global pharmaceutical outsourcing industry.
Following the acquisitions, inVentiv becomes a company with 13,000 employees in three divisions, Clinical, Commercial, and Consulting, with more than 6,000 employees dedicated to clinical research worldwide, including in the emerging markets of Asia, Latin America, and Central/Eastern Europe. The acquisitions will provide inVentiv the scale and scope to participate in strategic alliances of any size, enhancing its ability to meet client needs. It will give inVentiv greater opportunities for growth as pharmaceutical companies continue to increase outsourcing to enhance flexibility and lower fixed costs.
"One of our key strategic objectives is to be recognized as the leader in every segment where we serve our clients," said Paul Meister, Chief Executive Officer of inVentiv Health. "The acquisition of PharmaNet positions us among the top global CROs, increasing our capabilities, adding new expertise in every phase of clinical development, and strengthening our impressive client base and strong management team."
Jeffrey P. McMullen, President and Chief Executive Officer of PharmaNet, said, "Our team is fully committed to continuing to grow our business and executing on the future opportunities that this combined offering provides to both our customers and employees."
Mr. McMullen, who will lead inVentiv's CRO businesses, added that he chose to work with inVentiv because the organizations share the same client-centric approach and strong therapeutic expertise in oncology, rheumatology and neuroscience, as well as in clinical technologies. Together, inVentiv's combined and expanded global reach will better address customers' growing clinical needs. "In the day-to-day operations, little will change. We will continue to provide the same level of exceptional service that our clients have come to expect of us."
PharmaNet offers comprehensive drug development capabilities and expertise in Phase I through IV clinical trials, bioanalytical services, pharmaceutical and regulatory consulting, and staffing coupled with strong therapeutic expertise. About half of PharmaNet's revenue is generated outside the United States.
"In the evolving global market, scale is a key competitive advantage to developing strategic relationships with our clients. This acquisition allows us to achieve critical scale while providing enhanced services to our clients any time they need them, anywhere in the world," Meister said.
The expanded clinical services offering complements inVentiv's world-class global consulting and commercial capabilities. For clients, the cross-functional, global expertise means that inVentiv will be the company to turn to when looking to develop a new compound, create a winning business strategy, or successfully commercialize a product anywhere in the world.
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 advisor to PharmaNet, and Jefferies & Company, Inc. acted as financial advisors to JLL Partners. The transaction is subject to customary closing conditions and is anticipated to close on or about June 30, 2011.
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 results-driven clinical, consulting and commercial services to the pharmaceutical and healthcare industries. inVentiv's client roster includes more than 400 pharmaceutical, biotech and life sciences companies. 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 pending acquisitions of i3 and PharmaNet 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; changes in trends in the healthcare and pharmaceutical industries or in pharmaceutical outsourcing; and our inability to determine the actual time at which the liquidation of the Columbia Strategic Cash Portfolio will be completed or the total losses that we will actually realize from that investment vehicle. 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.
SOURCE inVentiv Health