PRA International, a leading global clinical research organization, announced a definitive agreement to acquire Pharma Bio-Research (PBR), a private early- phase clinical development company based in Zuidlaren, The Netherlands. With a 140-bed capacity in two locations, advanced bioanalytical services and data management capabilities, the company ranks among the top phase I/IIa service providers in Europe.
The purchase price is approximately euro 85 million, funded with a mix of cash, assumed debt and PRA International equity in the form of restricted stock representing approximately 15 per cent of the purchase price. The transaction is expected to close in the third quarter, a PRA International release stated.
"This is an important strategic acquisition for PRA as it greatly expands our Phase I/IIa or proof of concept service offering," said Pat Donnelly, President and CEO of PRA International. "The Pharma-Bio Research transaction provides us with a solid lab platform, augments our bioanalytic capability with the addition of biomarkers, bolsters our already strong European presence and complements our existing client base. Furthermore, we are gaining a talented, experienced team that is driven by quality and science. We welcome PBR's more than 300 committed and enthusiastic employees."
PRA's existing phase I operations in Lenexa, Kansas, will be combined with PBR's platform to provide comprehensive early development phase services in both the United States and Europe to benefit PRA's client base. Dr. Willem Jan Drijfhout, PBR's Chief Scientific Officer, will join PRA as Senior Vice President of Early Developmental Services with responsibility for all early phase development and bioanalytical lab work. Dr. Drijfhout will report to Donnelly and join PRA's Executive Committee.
"We are very excited about joining the PRA team," said Drijfhout. "Establishing integrated phase I/IIa services in both the United States and in Europe is an important strategic move to support our biotech and pharmaceutical clients. We can begin to realize the synergies between PRA's late stage clinical work and our bioanalytical laboratory for additional growth potential. The two companies share similar values, such as a focus on quality, a commitment to science, open communication and dedicated professionals doing the work. We believe that this cultural fit will enable a smooth integration, creating an even more rewarding environment for our employees."
PBR's trailing 12 month unaudited revenue as of March 31, 2006 totalled euro 40.8 million. Nearly one-third of PBR's revenue comes from large pharmaceutical companies, 21 per cent from biotech and 46 per cent from mid-sized firms.
Since 1984, the company has completed more than 1,200 clinical studies and 2,000 bioanalytical studies with a focus on complex research. PBR maintains a robust volunteer database and conducts extensive patient recruitment through the Internet. In addition to its 70-bed phase I research unit in Zuidlaren, PBR also operates a 70-bed phase IIa clinic in collaboration with University Medical Center Groningen, a top teaching hospital in The Netherlands.
Donnelly added, "We will quickly integrate PBR to better serve our biotech and pharmaceutical clients earlier in the drug development cycle, providing high-end first-in-man clinical services as part of our global platform. We continue to take steps to execute PRA's growth strategies of expanded service offerings and geographic reach, with our recent expansion into India being another example."
Wachovia Securities and Latham & Watkins LLP acted as advisors to PRA on this transaction.