COVANCE ADDS CENTRALIZED ECG CAPABILITY
Acquisition of GDXI Helps Accelerate Clinical Trial Process |
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Princeton, New Jersey, November 5, 1998 — Covance Inc. (NYSE: CVD) today announced the acquisition of GDXI, Inc., one of the world's leading providers of centralized electrocardiogram (ECG) analysis for clinical trials. ECG analysis is one of the most important and frequently utilized diagnostic tools in clinical trials, with more than 50 percent of all clinical trials including them as part of the study protocol.
"We are excited to add GDXI's centralized ECG capabilities to the array of services we offer our customers," said Chris Kuebler, Chairman and CEO of Covance. "This acquisition reflects our strategy of shaping solutions for our customers by providing them with rapid access to high-quality data that accelerates the drug development process. There is a natural connection between our existing central laboratory services and the capabilities GDXI offers that we believe will give Covance a real advantage in the marketplace."
GDXI has processed more than 5 million ECGs since it was founded in 1972. The company is currently supporting clinical trials involving more than 31,000 patients at over 2,300 sites worldwide. GDXI distributes a proprietary hand-held ECG device to clinical trial sites that can be used anywhere in the world. The device collects the data, performs a real-time quality check, then transmits the information by telephone to GDXI's central operations center in Reno, Nevada, which is staffed 24 hours a day, seven days a week. On-site cardiologists review the information and provide a patient report to the study sponsor within 24 hours.
"We are pleased to join forces with Covance and reach more customers with our centralized ECG services," said J.B. Bultman, GDXI president. "Our systems and processes help eliminate errors and get the data into the hands of investigators quickly. This reduces the cost and time involved in conducting clinical trials."
Mr. Bultman and the leadership team at GDXI have announced that they will continue with Covance. GDXI has annual revenues of $6 million. The purchase price was not disclosed.
"We look forward to offering this new ECG capability in conjunction with our central laboratory services," added John Mills, Corporate Vice President and General Manager for Covance's central laboratory facility. "We believe that these services will enable our customers to gather more of their clinical trial data in a centralized, efficient manner."
Covance's central laboratory services has participated in more than 6,500 protocols, processing more than 100 million tests from 38,000 investigator sites. Covance has central laboratory capabilities in Indianapolis, Indiana; Geneva, Switzerland; Capetown, South Africa; and Sydney, Australia, and is one of the largest providers of centralized laboratory services worldwide.
Covance, with headquarters in Princeton, NJ, is one of the world's largest and most comprehensive contract drug development companies with 1997 revenues of approximately $590 million, operations currently in 17 countries, and more than 6,900 employees worldwide. Covance's purpose is to lead advancements in drug development through science, service and shaping solutions.
Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the ability of the combined businesses to be integrated with Covance's current worldwide operations, actual operating performance and the ability to maintain large client contracts or to enter into new contracts. Additional factors that could cause results to differ materially are discussed in the company's recent filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K and its other periodic reports. |
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