PAREXEL Agrees to Acquire California Clinical Trials Medical Group, Inc., and Behavioral and Medical Research, LLC
Acquisition Adds West Coast Phase I Unit and Specialty Phase II – IV Clinical Research Services
PAREXEL International Corporation (NASDAQ: PRXL), a leading global bio/pharmaceutical services organization, today announced the execution of a definitive purchase agreement to acquire the business and operations of California Clinical Trials Medical Group, Inc. (“CCT”) and Behavioral and Medical Research, LLC (“BMR”).Established in 1981 with headquarters in San Diego, CCT and BMR provide a broad range of specialty Phase I – IV clinical research services through four clinical sites in California. The purchase price is $65 million, and the acquisition is expected to close within the next thirty days.
“The acquisition will further strengthen our global Clinical Pharmacology Network with the addition of 51 Phase I beds on the West Coast,” stated Josef von Rickenbach, Chairman and CEO of PAREXEL. “A 35-bed unit located on the campus of the Glendale Adventist Medical Center combined with an additional 16 beds that are currently under construction at another location, will expand PAREXEL’s Clinical Pharmacology capacity to over 400 beds, making PAREXEL one of the largest providers of Phase I services in the world. The deep experience that CCT and BMR have with central nervous system clinical trials and neuroscience drug development services, combined with their expertise in performing complex studies, will enhance the services we currently provide to clients. Of note, they have been pioneers in Japanese bridging studies, working closely with Japanese regulatory officials to enable pharmaceutical companies to save time and development costs by gathering the data necessary for Japanese regulatory submissions from sites outside of Japan. CCT has also established a strong franchise with renowned expertise in the area of sleep disorders, which will be an excellent complement to the sleep studies PAREXEL currently offers. The revenue and profits the acquisition will bring will also help to accelerate a return to profitability in PAREXEL’s U.S. operations.”
Robert Palko, President and Chief Operating Officer of CCT and BMR, noted, “Joining forces with PAREXEL should enable us to access a much broader client base for our specialized Phase I through IV services, and provide us with the ability to present our clients with a more extensive product and service offering to meet their diverse needs. We look forward to better leveraging our specialized expertise as we integrate our company with PAREXEL’s robust consulting and clinical research services portfolio.”
Edgemont Capital Partners served as exclusive financial advisor to California Clinical Trials.
At Edgemont Capital Partners
David K. Blume, Managing Director
Phone: 212-867-8935 Fax: 212-214-0911
Jeff B. Swearingen, Principal
Phone: 212-867-8935 Fax: 212-937-3816