Covance to Sell Its Interactive Voice and Web Response Services and Enter Into a Multi-Year Marketing Agreement with Phase Forward
PRINCETON, N.J., July 15, 2009 /PRNewswire-FirstCall via COMTEX/ -- Covance Inc. (NYSE: CVD) today announced it has signed an agreement to sell its Interactive Voice & Web Response Services (IVRS/IWRS) business to Phase Forward (Nasdaq: PFWD). In addition, Covance and Phase Forward have agreed to enter into a multi-year marketing agreement to provide Phase Forward's electronic data capture solutions and IVR/IWR services to Covance clients for the next five years. Covance expects the sale, which is subject to certain closing conditions, to be completed by the end of August.
In addition, Covance intends to collaborate with Phase Forward on technology that is used in the management and oversight of clinical trials such as electronic data capture, bedside data capture, electronic diaries, and other enabling technologies that have the potential to improve the efficiency of the drug development process.
"Covance remains fully committed to providing our clients with integrated drug development solutions, including advanced technology for supporting clinical trials," said Joe Herring, chairman and CEO of Covance. "We are delighted to broaden our relationship with Phase Forward, our preferred provider of EDC software for clinical trials, to include market leading IVRS/IWRS technology for clinical trials. We believe our clients will benefit from Phase Forward's industry-leading integrated data management platform and Covance's integrated clinical trial solutions. The transaction also allows Covance's management team to focus more attention and investments on growing our service offerings in the larger markets we serve."
"Covance and Phase Forward are committed to working together to deliver best-of-class solutions to our clinical trial customers," said Bob Weiler, chairman, president and chief executive officer of Phase Forward. "Covance has been a pioneering leader in the IVRS/IWRS market and we look forward to building upon their success. We are also delighted to solidify our long-term strategic relationship with one of the world's leading and most successful CROs."
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with annual revenues greater than $1.7 billion, global operations in more than 25 countries, and more than 9,800 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through its website at www.covance.com.
About Phase Forward
Phase Forward is a leading provider of integrated data management solutions for clinical trials and drug safety. Phase Forward's products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 290 organizations and regulatory agencies worldwide. Additional information about Phase Forward is available at www.phaseforward.com.
Statements contained in this press release, which are not historical facts, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such Forward-looking statements including the statement contained herein regarding the expected closing of the sale and anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, the ability to satisfy the closing conditions to the sale, competitive factors, outstanding trends in the pharmaceutical industry, levels of industry research and development spending, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss of large contracts, and other factors described in the Company's filings with the Securities and Exchange Commission.