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N.Y. Equity Firm to Buy Bioclinica, Corelab Partners

N.Y. Equity Firm to Buy Bioclinica, Corelab Partners [the Philadelphia Inquirer]

From Philadelphia Inquirer (PA) (January 31, 2013)

Jan. 31--Bucks County-based BioClinica, Inc., which handles imaging and data collection from clinical trials for pharmaceutical companies, said Wednesday it agreed to be acquired by a New York-based private equity firm for $123 million.

JLL Partners said in a statement that it will pay $7.25 per share, which is a 28.7 percent premium over the average price for the 52-week period that ended Tuesday. The 52-week price range over the same period was $4.60 to $6.59. BioClinica’s all-time high was $9.82 on Nov. 15, 2007.

The NASDAQ-listed stock rose more than 19 percent Wednesday on news of the sale, closing at $7.21.

JLL Partners also announced that, in a separate transaction, it will acquire CoreLab Partners, Inc., headquartered in Princeton, and merge the two companies. CoreLab Partners provides medical imaging solutions and cardiac safety services.

BioClinica president and chief executive officer Mark L. Weinstein will lead the combined company, which will be privately held.

BioClinica has facilities in Newtown Township and Audobon, Montgomery County. Besides Princeton, CoreLab has facilities in Bethesda, Md.; Germany; Japan; and China.

It was unclear Wednesday whether facilities will be closed or employees laid off. JLL Partners managing director Daniel Agroskin could not be reached for comment on those issues.

BioClinica employs 586 people, BioClinica chief financial officer Ted Kaminer said Wednesday. CoreLab employs about 325.

Imaging services, particularly in oncology, might be an area of redundancy and could be a source of job reductions, but Kaminer declined to predict about employment changes. He said integration plans were beginning.

About 55 percent of BioClinica’s business is in imaging, with about 45 percent in electronic data solutions, Kaminer said.

"There are a lot of big players in this space," Kaminer said. "There is a lot of benefit to be gained by combining the complementary strengths of the two companies and the employee base."

BioClinica is scheduled to release fourth-quarter and full-year results for 2012 on Monday. In the third quarter of 2012, it had $19.2 million in revenue and $542,000 of net income, according to its filing with the Securities and Exchange Commission.

Drug maker Pfizer, Inc. is BioClinica’s biggest customer, with 18 projects, representing 19.9 percent of BioClinica’s third-quarter revenue, according to the SEC filing.

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Contact David Sell at dsell@ phillynews.com or 215-854-4506. Read his blog at www.philly.com/phillypharma and on Twitter @phillypharma.

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(c)2013 The Philadelphia Inquirer

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Posted: February 2013


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