Encorium Group Signs $6.2 Million of New Contracts Mainly for Vaccines Clinical Trials
Approximately $20 Million of New Business Contracts Announced During the Past Ten Weeks
WAYNE, Penn., September 22, 2008 /PRNewswire-FirstCall/ -- Encorium Group, Inc. , 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 companies, today announced the signing of $6.2 million of new business contracts, primarily consisting of vaccine clinical trials with a major global biopharmaceutical company to be conducted in multiple European countries. Revenue recognition will begin in the fourth quarter of 2008 with the remainder expected to occur on a proportional basis as services are performed on each project.
David Ginsberg, DO, Encorium Group's new President and Chief Executive Officer, stated, "We are delighted to have become a significant partner to this global pharmaceutical company in their vaccines development. Encorium is currently a leading CRO, when it comes to the experience and expertise in the clinical development of pediatric vaccines. I am very proud of our excellent people, who are the key to this kind of repeat business. Vaccine development will continue to be key area of focus for Encorium in the future."
Kai Lindevall, M.D., Ph.D., Encorium's Executive Chairman, commented, "We are very encouraged by the volume of new contracts we have been able to sign during the last 10 weeks. Most of these wins relate to our European operations, but we are currently strengthening our business development efforts in the U.S. and expect to achieve results from this effort early next year. We will continue to strengthen our capabilities in our three primary areas of focus, vaccines, oncology and cardiovascular trials, while expanding into additional therapeutic areas."
About Encorium Group, Inc.
Encorium Group, Inc. is a global clinical research organization specializing 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 regarding future expectations. Those statements involve risks and uncertainties, and actual results could differ materially from those discussed. Risks and uncertainties that could affect the Company's future operating results and financial condition generally 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, 2007 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.
CONTACT: Philip L. Calamia, Chief Financial Officer of Encorium Group,Inc., +1-610-975-9533
Ticker Symbol: (NASDAQ-NMS:ENCO)
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Posted: September 2008