ERT Agrees to Acquire the Research Services Business of CareFusion
PHILADELPHIA, PA, 30 April 2010. ERT (NASDAQ: ERES), a global provider of technology and services to the pharmaceutical, biotechnology and medical device industries, announced today that it has agreed to acquire the research services division of CareFusion Corporation (CRS), for $81 million in cash. CRS is a leading provider of respiratory diagnostics services and manufacturer of diagnostic devices and also offers cardiac safety and ePRO services. All will be integrated into ERT’s existing business. ERT stated that the transaction is expected to close in June 2010 pending satisfaction of customary closing conditions. No stockholder approvals are required.
Dr. Michael McKelvey, President and CEO of ERT, said “ERT is building upon its leadership in cardiac safety and its expertise as a service and technology provider to combine with one of the clinical research industry’s leading respiratory diagnostics core labs, technology companies and diagnostic device manufacturers. This transaction delivers on our stated strategy to leverage our cardiac platform and operating model. This will support the remote collection, interpretation and delivery of clinical efficacy and safety information critical for all phases of clinical research and provide support to leverage our core expertise into the larger healthcare market.” Dr. McKelvey added "CRS has developed an impressive business providing integrated, customized solutions relating to pulmonary function testing and other services for its clients. This acquisition will provide our existing and new clients in the clinical research industry with the ability to more efficiently capture, process and distribute clinical data during all phases of drug development.”
Paul ter Grote, the President and General Manager of CRS, added “We are excited to join ERT as this brings together two leading-edge companies whose reputations have been built on innovation, customer service and flexibility. As one organization we will be able to offer an integrated suite of products and services to meet our clients’ needs now and in the future. It is a natural and complementary strategic fit.”
This acquisition brings an entire new line of business to ERT and also brings immediate added scale to the company’s two current lines of business – cardiac safety and electronic patient reported outcomes (ePRO). With the cardiac safety, respiratory diagnostics and ePRO businesses, ERT will now be better positioned to address a clinical research market estimated at approximately $1.3 billion annually and to extend the company’s capabilities to further innovate and integrate offerings for the benefit of its clients. Furthermore with the addition of CRS’s leading device manufacturing capability, ERT now has the ability to grow into other parts of the clinical research and healthcare delivery markets.
Both organizations are focused on the improvement of the clinical trial process through the standardization and centralization of key clinical trial data. The strategic combination of ERT and CRS will add significant benefits to both company’s existing and new customers, allowing the company to become a more valuable partner. Both organizations share a strong commitment to client satisfaction, quality, scientific leadership, innovation and dedication to employees. ERT will continue to collaborate with all of its key CRO, Phase I, Academic Research Centers, device suppliers, and other strategic partners to promote speed, accuracy, quality and reliability of data collection and reporting.
For calendar year 2009, assuming CRS had operated as a stand-alone business, CRS generated preliminary unaudited revenues of approximately $49.6 million. ERT anticipates that CRS will generate revenue growth of between 30% and 35% in calendar year 2010.
For further press information, please contact Fiona Robinson, The Scott Partnership, 1 Whiteside, Station Road, Holmes Chapel, Cheshire CW4 8AA, United Kingdom. Phone +44 1477 539539, Fax +44 1477 539540, Email email@example.com .
About eResearchTechnology, Inc.
Based in Philadelphia, PA, eResearchTechnology, Inc. (http://www.ert.com ) is a global provider of technology and services to the pharmaceutical, biotechnology and medical device industries. The Company is the market leader in providing centralized core-diagnostic electrocardiographic (ECG) technology and services to evaluate cardiac safety in clinical development. The Company also provides technology and services to streamline the clinical trials process by enabling its customers to automate the collection, analysis and distribution of ePRO clinical data in all phases of clinical development.
About CareFusion Research Services
CRS is a business initiative with its roots in the former Erich Jaeger GmbH which was founded in Würzburg, Germany in 1954 as a healthcare device manufacturing and servicing operation. The business entered the clinical research market in 2002 under VIASYS Healthcare Inc. It subsequently became part of Cardinal Health in 2007 when Cardinal Health acquired VIASYS Healthcare Inc. In 2009 CRS was part of the businesses spun off from Cardinal Health with the creation of CareFusion, a $4 billion healthcare company with products and services focused on improving safety and quality of care. CRS currently provides services to 16 of the 20 largest pharmaceutical companies and has supported clinical trials in more than 75 countries and more than 25,000 investigator sites.
About CareFusion Corporation
CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. The company develops market-leading technologies including Alaris® IV pumps, Pyxis® automated dispensing and patient identification systems, AVEA® and Pulmonetic Systems ventilation and respiratory products, ChloraPrep® products, MedMined™ services for infection surveillance, NeuroCare neurological monitoring and diagnostic products, V. Mueller® surgical instruments, and an extensive line of products that support interventional medicine. CareFusion employs more than 15,000 people across its global operations. More information may be found at www.carefusion.com .
Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, including, but not limited to, the anticipated future financial guidance, and the other expectations and anticipated strategic benefits from, the acquisition, as well as the timing of closing of the acquisition, involve a number of risks and uncertainties such as the ERT's ability to complete negotiation of its new credit facility, obtain all necessary approvals for the transaction and satisfy other closing conditions and successfully integrate CRS into ERT, as well as other factors affecting ERT generally such as its ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues at the sponsoring client, competitive factors, technological development, and market demand. As a result, actual results may differ materially from any financial and strategic outlooks stated herein. Further information on potential factors that could affect ERT’s financial results can be found in its Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission. ERT undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE eResearch Technology Inc
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