WAYNE, Pa., July 13 /PRNewswire-FirstCall/ -- Covalent Group, Inc. today announced that it has recently signed multiple new business contracts with an aggregate value of $1.4 million. The contracts represent a mix of new projects and expansion of current studies with several different clients. The scope and therapeutic areas covered by the studies include cardiovascular disease, hematology, and urology. Revenue recognition for these contracts began during the first half of 2004 and will extend over the next 12 months.
Kenneth M. Borow, M.D., President and Chief Executive Officer, commented, “As we enter the third quarter, Covalent’s business development momentum, which began in late 2003, continues to escalate with the largest moderate-to-high probability pipeline we have seen in recent years. While the sell cycle of most of our new business remains unpredictable within a 6-12 month period, we are encouraged by both the quality and size of the clinical trial opportunities for which we are now competing. We expect to see this reflected in new business announcements in the coming months and remain very optimistic about our ability to meet or exceed our previously stated 2004 new business target of $30 million.”
Dr. Borow continued, “As I discussed at our Annual Shareholder’s Meeting last month, I believe that industry fundamentals are undergoing a shift that should result in a period of multi-year expansion. With our recent clinical trials successes (including the REVERSAL Study and development contracts for counter bioterrorism vaccines), our moves to expand from a multi-national to a global service provider, and our efforts to broaden our client and therapeutic area reach, I believe that Covalent is now well-positioned to participate in the most dynamic segment of this next wave of industry expansion. The contracts announced today with multiple clients across several different therapeutic areas continue a very positive trend in our new business signings.”
About Covalent Group
Covalent Group is a clinical research organization that is a leader in the design and management of complex clinical trials for the pharmaceutical, biotechnology and medical device industries. The Company’s mission is to provide its clients with high quality, full-service support for their clinical trials. Covalent offers therapeutic expertise, experienced team management and advanced technologies. The Company has clinical trial experience across a wide variety of therapeutic areas such as vaccines, biologics, gene therapy, immunology, cardiovascular, endocrinology/metabolism, diabetes, neurology, oncology, infectious diseases, gastroenterology, dermatology, hepatology, womens’ health and respiratory medicine. Covalent believes that its leadership in the design of complex clinical trials, its application of innovative technologies, therapeutic expertise and commitment to quality offer its clients a means to more quickly and cost effectively develop products through the clinical trial process. With its wholly-owned international subsidiary, Covalent Group, Ltd., as well as its Strategic Partners operating in South America, Eastern Europe, Russia and Ukraine, and Australia, New Zealand, and the Asia-Pacific region, Covalent is able to meet the global drug development needs of its clients.
This press release contains forward-looking statements identified by words such as “estimate,” “project,” “expect,” “intend,” “believe,” “anticipate” and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Potential risks and uncertainties that could affect the Company’s future operating results and financial condition include, without limitation: (i) our success in attracting new business and retaining existing clients and projects; (ii) the size, duration, and timing of clinical trials; (iii) the termination, delay or cancellation of clinical trials; (iv) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (v) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (vi) the ability to maintain profit margins in a competitive marketplace; (vii) our ability to attract and retain qualified personnel; (viii) the sensitivity of our business to general economic conditions; (ix) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices; and (x) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties. Additional information concerning factors that could cause actual results to materially differ from those in forward-looking statements is contained in Covalent Group’s SEC filings, including its Annual Report on Form 10-K and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Covalent Group’s investor relations department.
Investor relations contact: John Capodanno, (646) 536-7026 Media contact: Gregory Q. Tiberend, (646) 536-7005 Contact us on-line: http://www.covalentgroup.com/
Covalent Group, Inc.
CONTACT: Investor relations - John Capodanno, +1-646-536-7026, orMedia - Gregory Q. Tiberend, +1-646-536-7005, both for Covalent Group, Inc.
Web site: http://www.covalentgroup.com/
