PRINCETON, N.J., June 14, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Covance Inc.
(NYSE: CVD) announced today that it has been awarded the largest contract in
its history, an extended and expanded dedicated space agreement with a minimum
value of $187 million. This new contract effectively secures toxicology space
for a client from 2007 to 2013 and will add approximately $150 million to the
company's second quarter backlog, the majority of which will be converted to
revenue between 2009 and 2013.
"For the second time this year, a company has decided to outsource a
significant portion of its GLP toxicology work to Covance under a dedicated
space contract," said Joe Herring, Covance Chairman and CEO. "The expansion
of our relationship with this client is a testament to the strength of
strategic collaboration as well as our ongoing focus on process excellence and
client service delivery. We have worked closely with this client to fully
understand their needs for integrated preclinical services, including
bioanalytical and metabolism capabilities, to efficiently and accurately test
the safety and efficacy of new drug candidates."
"Our dedicated space model offers a win-win proposition for both our
clients as well as for Covance," said Wendel Barr, Corporate Senior Vice
President and co-President of Covance Early Development Services. "The sponsor
obtains guaranteed long-term capacity and infrastructure to run a broad array
of preclinical studies, enabling the future development of its pipeline
without logistical constraints. Due to the increased project visibility from
the strategic relationship, Covance is able to maximize capacity and resources
as well as provide higher levels of quality, speed, and efficiency. Our
continued progress with the dedicated space model signals changing market
dynamics that creates significant strategic opportunities for Covance."
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 billion, global operations in more than 20 countries,
and more than 7,400 employees worldwide. Information on Covance's products and
services, recent press releases, and SEC filings can be obtained through its
website at http://www.covance.com.
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, competitive factors, outsourcing trends in the pharmaceutical
industry, levels of industry research and development spending, Covance's
ability to provide the services called for in the agreement and realize the
anticipated revenues, 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.