Italian CRO Pierrel plans acquisitions
pharmafile | May 28, 2009 | News story | Research and Development | Pierrel
Italian contract research and manufacturing company Pierrel has signed two separate deals to bolster its capabilities in the clinical research market.
Pierrel has offered to buy the US contract research activities of troubled US firm Encorium, which suffered a 14.5% decline in 2008 revenues and the failure of an international expansion programme.
Pierrel says it will pay a fee for the business based on a percentage of Encoriums backlog orders at the time of closing or $1.35 million which ever is the larger amount less any liabilities. At the moment Encorium has a backlog of around $8 million.
Last year, Encoriums US business booked revenues of $8.4 million, according to Pierrel, which says the acquisition will provide a foothold in the $16 billion US contract research market and boosts its expertise in vaccine and cancer studies.
Meanwhile, Encorium has also announced plans to sell its Finland-based European subsidiary to an unnamed US-based CRO.
Encorium has been looking for buyers since it was forced to retreat from a merger with investment firm Linkcon intended to bring in additional CRO acquisitions in India, China and Latin America, as well as its proposed acquisition of US CRO Prologue Research International.
Farma Resa IMP
In the second deal, Pierrel is planning to take control of fellow Italian company Farma Resa IMP for 1.57 million euros. The transaction will be carried out in three stages closing in February 2011, and the first stage completed as planned on 14 May.
Farma Resa is being acquired by Pierrel subsidiary Hyperphar and specialises in clinical R&D studies, analytical services and packaging of clinical trial materials.
The addition of packaging capabilities means that Pierrel can now offer a complete suite of clinical services, from phase I to phase IV studies, according to Hyperphar chief executive Dr Luigi Visani.
Last year Farma Resa IMP reported revenues of 1.51 million euros and earnings before interest taxes, depreciation and amortisation (EBITDA) of 397,000 euros.
