PAREXEL International Acquires HERON Group LTD in Up to $38 Million Deal
Published: May 01, 2013
BOSTON, April 30, 2013 /PRNewswire/ -- PAREXEL International Corporation (Nasdaq: PRXL), a global clinical research organization, announced that today the Company acquired all of the outstanding equity securities of the HERON Group LTD ("HERON"), a life sciences consultancy which provides evidence-based commercialization services to support biopharmaceutical companies throughout the lifecycle of their products. HERON has expertise and methodologies spanning a wide range of services, including strategic market access planning, systematic reviews, economic modeling and evaluation, pricing, reimbursement strategies, global value dossier writing, and engagement with Health Technology Assessment authorities. HERON was founded in 1999 and works with more than 50 biopharmaceutical and life sciences companies globally. With headquarters in Luton, United Kingdom, and additional offices in India, Sweden, and the United States, HERON employs approximately 140 individuals. Prior to the sale, HERON was privately owned. The purchase price was approximately $24 million (which was adjusted at closing to reflect HERON's cash, indebtedness, and working capital balances at closing), plus the possibility of an additional $14.2 million over twenty-six months if specific financial targets for HERON are achieved. The acquisition was funded through use of existing cash.
Josef von Rickenbach, Chairman and CEO of PAREXEL stated, "Given the highly competitive and constantly changing global healthcare landscape, demonstrating product value and cost effectiveness to public and private payers requires rigorous data analysis. The acquisition of HERON further strengthens our ability to offer our clients a full spectrum of services that aid in developing products with reimbursement and market access in mind. Over the past thirteen years, HERON has built one of the largest independent evidence-based consultancies, and has achieved a market leadership position. We are pleased to be able to expand the expertise of our commercialization offering and believe that HERON will help to enhance the portfolio of services that we provide through our PAREXEL Consulting and Medical Communications Services business."
John Kerrigan, one of the founders of HERON and the new Corporate Vice President and Worldwide Head of HERON at PAREXEL stated, "HERON is excited to be joining PAREXEL to provide enhanced commercialization services. Combining with PAREXEL will provide us the ability to introduce HERON services earlier in the product development process, and to leverage PAREXEL's broad global presence. As the healthcare environment evolves, we look forward to continued innovation in the use of evidence to support commercial decisions."
PAREXEL has provided updated financial guidance for the Company, including the impact of the acquisition of HERON, in its Third Quarter earnings press release dated April 30, 2013.
About the Company
PAREXEL International Corporation is a leading global bio/pharmaceutical services organization, providing a broad range of knowledge-based contract research, consulting, and medical communications services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. Perceptive Informatics, Inc., a subsidiary of PAREXEL, provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 78 locations throughout 52 countries around the world, and has approximately 14,400 employees, including the HERON Group. For more information about PAREXEL International visit www.PAREXEL.com.
PAREXEL, Perceptive Informatics, Liquent, and HERON are registered trademarks of PAREXEL International Corporation or its affiliates.
This release contains "forward-looking" statements regarding future results and events, including, without limitation, statements regarding the Company's expected financial results, future growth and customer demand. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," "appears," "estimates," "projects," "will," "would," "could," "should," "targets," and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company's actual future results and actual events may differ significantly from those suggested or indicated in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with actual operating performance; actual expense savings and other operating improvements resulting from recent and anticipated restructurings; the loss, modification, or delay of contracts which would, among other things, adversely impact the Company's recognition of revenue included in backlog; the Company's dependence on certain industries and clients; the Company's ability to win new business, manage growth and costs, and attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses or enter into new lines of business; the impact on the Company's business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations and other international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2012 as filed with the SEC on February 4, 2013, which "Risk Factors" discussion is incorporated by reference in this press release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this press release.
CONTACTS: James Winschel, Senior Vice President and Chief Financial Officer
Jill Baker, Corporate Vice President of Investor Relations
Diana Martin, Vice President of Corporate Communications
SOURCE PAREXEL International Corporation