Encorium Group, Inc. Announces Signing of $1.7 Million in Contracts with Leading International Biotechnology Company for Clinical Trials in Oncology and RheumatologyWAYNE, Pa.--(BUSINESS WIRE)--Jan 10, 2008 - Encorium Group, Inc. (Nasdaq: ENCO), a full-service multinational contract research organization (CRO) that provides design, development, and management capabilities for clinical trials and patient registries to many of the world's leading pharmaceutical and biotechnology companies today announced the signing of multiple new contracts with an aggregate value of approximately $1.7 million. These contracts, which are with a leading international biotechnology company, are for regulatory submission services, support of new clinical trials, and changes-of-scope for existing studies. The therapeutic areas covered in these contracts are oncology and rheumatology. Revenue recognition began during the fourth quarter of 2007 and continues on a proportional performance basis over the life of the contract as services are performed.
Kenneth M. Borow, M.D., Encorium Group's President and Chief Executive Officer, commented, "These trials in oncology and rheumatology focus on developing fully human antibody therapeutics for unmet medical needs. They represent important business opportunities for Encorium with a repeat client. The continued growth of our scope of services for this client is indicative of our reputation for excellence and our ability to successfully support biopharmaceutical development services worldwide. We believe that our ability to conduct clinical trials internationally represents the best pathway for us to achieve sustained growth. Moreover, this further strengthens our capabilities within oncology which is one of our targeted areas for continued growth."
Kai Lindevall, M.D., Ph.D., Encorium Group's President, International Operations, Europe and Asia, commented, "These contracts are with a company that has an extensive and impressive pipeline of products for potential treatment of a variety of diseases including cancer and autoimmune disorders. We are proud of the fact that this important client has entrusted Encorium with a high level of responsibility for numerous products in their biologics development pipeline. This clearly shows that our strategy of building life-time partnerships with leading biotechnology companies is paying off."
About Encorium Group, Inc.
Encorium Group, Inc. is a global clinical research organization in the design and management of complex clinical trials and Patient 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 and medical device development programs. Encorium 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 infectious diseases, cardiovascular, vaccines, oncology, diabetes endocrinology/metabolism, gene therapy, immunology, neurology, gastroenterology, dermatology, hepatology, women's health and respiratory medicine. Encorium believes that its expertise in the design of complex clinical trials, its therapeutic experience 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. Encorium is headquartered in Wayne, Pennsylvania with its European base of operations in Espoo, Finland. The Company has a geographic footprint that includes over one billion people in North America, Western/Central/Eastern Europe, Scandinavia, and the Baltics.
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 and cash-on-hand 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;(xi) our backlog may not be indicative of future revenues and may not generate the revenues expected;(xii) our ability to successfully integrate the businesses of Encorium and Remedium Oy which we acquired on November 1, 2006; and (xiii) the performance of the combined business to operate successfully and generate growth. 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 Encorium Group's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2006 and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Encorium Group's investor relations department or The Equity Group, Inc.
Encorium Group, Inc.
Lawrence R. Hoffman, CPA, Esq., 610-975-9533
Chief Financial Officer
Investor Relations Counsel:
The Equity Group Inc.
Adam Prior, 212-836-9606
Posted: January 2008