WAYNE, Pa., Jan. 18 /PRNewswire-FirstCall/ -- Covalent Group, Inc. today announced the signing of a contract for $2.3 million with an innovative biotechnology company for the conduct of a multinational Phase 2 clinical trial of a new antithrombotic agent. This trial will assess the efficacy and safety of the study drug in an at-risk patient population. Work on the study is expected to begin immediately. Covalent will provide multiple services including consulting on trial design and protocol development, project and study site management, field operations, data management, biostatistical support, and medical writing. Revenues will be recognized on a proportional performance basis over the life of the contract as services are performed.
Kenneth M. Borow, M.D., Covalent Group’s President and Chief Executive Officer, commented, “We are delighted to have been chosen by this new client to work on this Phase 2 trial involving a novel cardiovascular agent. If this trial is successful, it is anticipated that additional clinical research trials will be conducted by the Sponsor and that Covalent will be well positioned to participate in this potentially large development program.”
Dr. Borow continued, “This trial is an excellent fit for Covalent. It combines our proven expertise in clinical trial design with our extensive operational experience in multi-national trials conducted in subjects at high risk for cardiovascular events. We anticipate a long and mutually beneficial relationship with the sponsoring company.”
About Covalent Group, Inc.
Covalent Group, Inc. is a clinical research organization that is a leader in the design and management of complex clinical trials and Patient Disease Registries 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 biopharmaceutical development programs. Covalent offers therapeutic expertise, experienced team management and advanced technologies. The Company has drug and biologics development as well as clinical trial experience across a wide variety of therapeutic areas such as cardiovascular, endocrinology/metabolism, diabetes, vaccines, infectious diseases, gene therapy, immunology, neurology, oncology, gastroenterology, dermatology, hepatology, women’s health and respiratory medicine. Covalent believes that its leadership in the design of complex clinical trials, its therapeutic expertise and commitment to excellence, and its application of innovative technologies, offer its clients a means to more quickly and cost effectively move products through the clinical development process. With its wholly-owned international subsidiary, Covalent Group, Ltd., as well as its Strategic Partners operating in various regions around the world, Covalent is able to meet the global drug development needs of its clients. For more information, please visit http://www.covalentgroup.com.
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 we are currently managing may change unexpectedly; (iii) the termination, delay or cancellation of clinical trials we are currently managing could cause revenues to decline unexpectedly; (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; (x) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties; and (xi) our backlog may not be indicative of future revenues and may not generate the revenues expected. You should not place any undue reliance on these forward-looking statements which speak only as of the date of this press release. Additional information concerning factors that might affect our business or stock price which 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 for the year ended December 31, 2004 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 for Covalent Lawrence Hoffman, CPA, Esq. CFO, Covalent Group, Inc. (610) 975-9533
Covalent Group, Inc.
CONTACT: Investor Relations, Lawrence Hoffman, CPA, Esq., CFO of CovalentGroup, Inc., +1-610-975-9533
Web site: http://www.covalentgroup.com/
