Covance Selects IBM For Management Of IT Infrastructure
|$180 million agreement to provide significant savings over the seven-year term|
|Princeton, New Jersey, January 21, 2004 — Covance Inc. (NYSE: CVD), a leading provider of drug development services, today announced that it has awarded IBM a $180 million contract to manage its IT infrastructure that will include Covance's computer and telephone network, e-mail system help desks, computer support and data centers worldwide.|
The decision allows Covance to focus its global information technology resources exclusively on applications that will help the company's pharmaceutical and biotechnology customers bring vital new drugs to market faster and more efficiently. Covance expects savings from this agreement to begin in late 2004 and ramp up over the seven-year term.
"It made perfect business sense to entrust these operational services to the premier IT services firm and to focus our own IT resources on the applications that power our drug development services," said Howard Moody,
Chief Information Officer, Covance, Inc. "By selecting IBM, we expect to deliver better applications, faster and at lower total cost, with significant aggregate costs savings over the life of the agreement compared to the continuing costs of doing it ourselves."
"IBM will provide Covance with robust IT resources, business flexibility and compelling financial value," said Dave Liederbach, Vice President, Healthcare Industry, IBM. "By leveraging IBM's worldwide expertise in managing IT resources, IBM will free Covance to focus on its mission-critical IT applications portfolio."
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with 2002 net revenues of $883 million, global operations in 18 countries, and approximately 6,700 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through the website in the About Covance area.
Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results 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 statements contained herein regarding 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 realization of the anticipated savings and the ability of the service provider to provide the outsourced services in a timely and professional manner, and other factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no duty to update any forward looking statement to conform the statement to actual results or changes in the Company's expectations.