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CWWeekly November 26th 2007 Issue

Nov 30, 2007 10:22:21 AM

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Top News

Nevada Doctor Reports Cherie Thibodeau to Attorney General's Office

Cherie Thibodeau, a fraudulent study broker, may not be working her scam much longer. For the past few months, she has been trying to solicit Las Vegas area doctors for business, using a business card that says, “Cherie Thibodeau, M.D., PhD., Chief Medical Officer/Clinical Operations.” As far as can be determined, Cherie Thibodeau does not have a license to practice medicine, and posing as someone with a medical license is an offense that is under the jurisdiction of the Attorney General’s Office in Nevada. One Nevada doctor, whose confidence Thibodeau gained, reported her to the Attorney General’s office last week.

Three Clinical Trial Companies Form Cardiac Safety Network

iCardiac Technologies, Spacelabs Healthcare and Charles River Laboratories, three companies helping sponsors determine the effects of new drugs on the heart, have joined together to form a collaborative called The Cardiac Safety Network. The network combines each vendor’s core competencies dealing with clinical cardiac safety trials to offer sponsor clients a single point of contact for recruiting healthy volunteers, running studies and analyzing cardiac testing data.

Other breaking news...      

Company Profile: An interview with Russell Rosenberg, Ph.D., president, NeuroTrials Research

To read the full articles for this issue or for more information on these and other breaking stories, please click here for subscription information. Past weekly article summaries for the year can be found in the CW Weekly Issue archives.

MJFF Appoints Senior Medical Advisor

Nov 29, 2007 10:59:53 AM

By Sara Gambrill

The Michel J. Fox Foundation for Parkinson’s Research (MJFF) has appointed Irene Hegeman Richard, M.D., to the newly created position of Senior Medical Advisor, a sign that MJFF’s investment in clinical research will continue to increase.

MJFF participates in venture philanthropy, a term coined to describe the funding that disease foundations provide to biopharmaceutical companies to research potential drugs and therapies in their respective diseases. U.S. disease foundations’ investment in the biopharmaceutical industry in 2007 will be about $75 million—10 times as much as their investment in 2000, according to CenterWatch. The figure should continue to rise.

MJFF launched its industry program, called Therapeutics Development Initiative, in 2006 to expand its industry investment. Last year, 10 industry research teams were awarded $4.6 million, though other funding commitments often have an industry component. The foundation has committed $5 million to industry in 2007 to 2008. Since its founding in 2000, MJFF has funded more than $98 million in research, either directly or through partnerships.

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etrials Becomes Sixth EDC Company to Settle Datasci Patent Dispute

Nov 28, 2007 4:21:52 PM

By Stephen DeSantis

Morrisville, N.C., based-etrials has agreed to pay $1.75 million to Maryland-based technology firm Datasci LLC to settle a long running EDC technology patent infringement suit. The settlement includes an upfront licensing fee  for three of Datasci’s eClinical legacy products. By licensing the original technologies, Datasci has agreed to dismiss its claim against etrials, giving up any future royalty rights.

“Obviously we are eager to see more companies in this whole marketplace obtain licenses and start to use this technology. We hope there will be many more,” Marc Kozam, Co-founder of Datasci told CenterWatch.

He stated that the majority of companies from the original lawsuit have either settled with or are close to doing so.

The products in the agreement include ASFlash–offered by etrials in 2002 through 2003–and QSCapture and Webcapture, which aren’t current offerings.

“The settlement limits any future exposure and allows us to focus all of our attention on improving etrials' core operations and expanding our market share within the rapidly growing market for eClinical technologies and services," stated Chip Jennings, etrials’ chief executive officer.

Datasci filed similar lawsuits against eClinical companies Phase Forward, Datatrak, DSG and DataLabs. Phase Forward settled for $8.5 million. In August 2006, DataLabs, which was acquired by ClinPhone in October 2006, settled its suit for an undisclosed amount and a nonexclusive licensing arrangement.

DataLabs cited the primary reason for its settlement agreement was because of the possibility of its customers getting sued, which Datasci was exploring. DataTrak settled their case this year for undisclosed amount. DSG's suit was dismissed in March 2007. The terms of the agreement between Datasci and DSG were confidential.

According to Kozam, Datasci is an ongoing venture that is presently developing new innovations to address some of the challenges in the eClinical Marketplace.

“We don’t have end user products at this point, but there are several areas of development that are occurring," he stated.

In 2002, the U.S. Federal Patent and Trade Mark Office awarded Mark L. Kozam, founder of Maryland-based MLK Software a patent— 6,496,827—for the “methods and apparatus for the centralized collection and validation of geographically distributed clinical study data with verification of input data to the distributed system.” The patent was filed in January 2000 and patent office records show the company began the process of obtaining the patent by filing a Patent Cooperation Treaty (PCT) in May 1998.

Stephen DeSantis is the Senior Associate Editor at Thomson CenterWatch.

Nevada Doctor Reports Cherie Thibodeau to Attorney General’s Office

Nov 26, 2007 10:18:37 AM

By Sara Gambrill

Cherie Thibodeau, a fraudulent study broker, may not be working her scam much longer.

For the past few months, she has been trying to solicit Las Vegas area doctors for business, using a business card that says, “Cherie Thibodeau, M.D., PhD., Chief Medical Officer/Clinical Operations.” As far as can be determined, Cherie Thibodeau does not have a license to practice medicine, and posing as someone with a medical license is an offense that is under the jurisdiction of the Attorney General’s Office in Nevada.

One Nevada doctor, whose confidence Thibodeau gained, reported her to the Attorney General’s office last week.

Off and on between stints in California State Prison, Thibodeau has operated under several aliases, including Cherie Casio and Cherie Rivard, and last year, started claiming to have a medical degree. During the six years that CenterWatch has been reporting on her activities, Thibodeau has bilked numerous investigative sites across the U.S. out of potentially hundreds of thousands of dollars.

CenterWatch obtained a copy of a solicitation letter from an alert reader who recognized Thibodeau’s name from previous articles in CWWeekly and The CenterWatch Monthly. That letter was sent by “Cherie Thibodeau, M.D.” and “Dr. X” to Las Vegas area doctors on Oct. 3, 2007. The letter states that “Doctor X” has been selected to participate as a principal investigator in a phase IIa post-herpetic neuralgia clinical trial and is looking for “consulting physicians who are interested in referring patients who meet criteria for the study and enroll as possible participants.” Thibodeau promises compensation to doctors for patient referrals, which is unethical according to Good Clinical Practice.

Dr. X became suspicious of Thibodeau during the site review when she gave the monitor a different name  than the doctor knew her by—Cherie Casio. When Dr. X asked her about it, Thibodeau claimed that Casio was her maiden name and that she preferred to use it.

Thibodeau’s typical scam is to promise doctors that she will get them studies and handle administrative tasks for a percentage of the study budget. All payments go through her. Thibodeau starts off paying sites their fair share or enough of it for the first one or two studies and then pays them nothing and can’t be reached. Lately, she’s paid sites nothing at all, defrauding them of funds due them. Most recently, she bilked a site in Ohio out of $5,000.

Sara Gambrill, Senior Editor at Thomson CenterWatch and author of The Emerging Markets of Clinical Research.

CWWeekly November 19th Issue

Nov 23, 2007 6:00:00 AM

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Top News 

etrials Aims for Profitability with Rebuilding Plan

etrials' third quarter revenue fell and its loss widened amid deep restructuring and organizational changes planned for the next two to three quarters. The company is trying to climb its way to profitability and improve its service delivery issues.

Quintiles Makes First Buy in Central America with Bio-Trials

Research Triangle Park, N.C.-based contract research organization (CRO) Quintiles made its first Central American acquisition with the purchase of Panama-based CRO Bio-Trials. Terms of the sale were not disclosed.

Other breaking news...      

Company Profile: An interview with Gail Adinamis, president and chief executive officer, Clinical Resource Network

To read the full articles for this issue or for more information on these and other breaking stories, please click here for subscription information. Past weekly article summaries for the year can be found in the CW Weekly Issue archives.  

eClinical Technology News

Nov 20, 2007 9:06:00 PM

Pittsburgh, Pa.-based ePRO company invivodata launched its new version of its EPX management system: EPX ePRO Management System, Version 5.0. The system is web-based and has the capability to manage site performance, patient enrollment and compliance, and data integrity in real-time. The system can also generate user-customized reports and changeable dashboard views. It has an e-mail alert system that signals when items need action taken and boasts the industry’s only electronic data clarification form (EDCF) system to resolve discrepancies in data.

Boulogne, France-based Market Research firm Cegedim Strategic Data acquired Paris-based 3ES, a CRO which specializes in online data management and analysis. 3ES was founded in 1998 and has developed its own eClinical software tool (INES). Its team of 15 employees will integrate into Cegedim’s pharmaco-epidemiological research team in Boulogne.

Paris-based engineering and consulting firm Business and Decisions has launched an eClinical division based in North America at the company’s Wayne, Pa., office. Kathryn Hanson, director of eClinical services and solutions, will lead the division. The company maintains a certified advantage Oracle partnership and will use the Oracle Clinical, remote data capture and thesaurus management system and Siebel clinical trials management system suite of applications. Its services will include technical services, application training, IT compliance and validation, application hosting, and managed services for Oracle’s Life Sciences products.

etrials Aims for Profitability with Rebuilding Plan

Nov 19, 2007 6:45:00 AM

By Stephen DeSantis

Morrisville, N.C.-based eClinical company etrials’ third quarter revenue fell and its loss widened amid deep restructuring and organizational changes planned for the next two to three quarters. The company is trying to climb its way to profitability and improve its service delivery issues.

“Last quarter, we began to re-engineer etrials’ operations and transition the company into a more responsive, service-focused organization, building for the future. And we continued that process this quarter,” said Chip Jennings, chief executive officer of etrials.

The company has been undertaking major executive management changes as well. Jennings replaced the company founder John Cline in May, who resigned but still remains on its board of directors. Its former chief operating officer Robert Sammis was replaced with Peter Benton in July. etrials also hired a new vice president of product development, Chuck Piccirillo. The company is also building a new sales force.

Jennings spoke to a number of customers when he joined the company to ascertain what they thought needed to be changed within etrials.

“There was lots of commonality. There was not much disagreement actually. The single biggest issue from a customer perspective was service delivery issues and I don’t think it is any secret that etrials had some problems back in 2006 in regards to that,” said Jennings during the company’s recent earnings conference call.

Continue reading... »

CWWeekly November 12th Issue

Nov 16, 2007 3:16:00 PM

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Top News

Ergomed Opens Office in Dubai

Frankfurt, Germany-based contract research organization (CRO) Ergomed Group has opened a new regional headquarters in Dubai City's new life sciences research park, DuBiotech. The company plans to use the office as a hub for its operations in the Middle East and India. The company’s main headquarters is located in the Frankfurt Biotechnology Innovation Center, which has collaborated with DuBiotech since 2005. The center brought the CRO and DuBiotech together to discuss the opportunities in Dubai and an agreement was made just a few months later. The 20 million square-foot space, or nearly one square-mile, was set aside by the Dubai government for the research park to attract international research and development companies to do business in the Dubai emirate, a state within the United Arab Emirates.

Averion Buys Hesperion

Southborough, Mass.-based contract research organization (CRO) Averion International acquired Swiss-based CRO Hesperion AG from its French parent company Cerep SA. Averion will pay $36.2 million forvthe company. To finance the acquisition, Averion issued three-year senior secure notes on the company’s current debt. The debt financing raised $24 million towards the purchase. Phillip Lavin, Ph.D., resigned as chief executive officer of Averion on Oct. 31, and was immediately appointed as executive chairman of the company. He was replaced by Hesperion’s chief executive officer Dr. Markus Weissbach, who was appointed head of Hesperion in September 2006.

Other breaking news...

  • ICON reports strong third quarter revenues...
  • AAIPharma opens office in Hungary...

Company Profile: An interview with Kristine Kuryla, operations manager, University of Rochester Medical Center Clinical Trial Central Laboratory

To read the full articles for this issue or for more information on these and other breaking stories, please click here for subscription information. Past weekly article summaries for the year can be found in the CW Weekly Issue archives.  

Indian CRO Manipal AcuNova and ECRON GmbH Merge

Nov 16, 2007 1:02:00 PM

Manipal AcuNova, a Bangalore, India-based CRO has acquired ECRON GmbH a of CRO based in Frankfurt, Germany. The new company will have a combined staff of 265 and will be known as ECRON AcuNova. It will provide services for phase I through IV global studies, including project management, data management, biostatistics, medical writing, central lab and BA/BE.

The new company will maintain both headquarters as well as operate a U.S. hub in Princeton, N.J. Kohkan Shamsi, M.D., will become chief executive officer of ECRON AcuNova and will be based in the U.S.

ECRON’s founder, K. D. Wiedey, M.D., will act as the company’s president in Europe. D.A. Prasanna, M.D. will lead the CRO’s Asia operations. “We are able to strengthen our expertise in clinical trials and data management from our Indian counterparts with faster patient enrollment in clinical trials, timely database lock, high quality early phase development as well as unique features like access to the central lab,” stated Wiedey.

CenterWatch Monthly November 2007 Issue

Nov 16, 2007 12:59:20 PM

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Changes in Asia-Pacific Regulations Position Region for More Growth

Between 2005 and 2006, big pharma and biotech initiated 50% more global clinical trials in the Asia-Pacific region. As regulators in the region continue to improve the approval process in their respective countries, growth should continue. Spearheaded by Japan, regulators in Asia-Pacific countries are becoming more aware of, and tapping into, the region's power as a bloc. CenterWatch surveyed 156 investigative sites from more than a dozen Asia-Pacific countries in its first ever survey of the region in late 2006. Among its findings, the survey revealed the timeliness with which patients are enrolled and what factors could best prevent future delays.

Competition Challenges U.S. Site Profitability

Investigative sites continue operating under financial pressures even as contract research organizations have had a very profitable run in 2007. Competition for research sites grows as sponsors and the larger global CROs are placing more studies globally. CenterWatch data show that pharmaceutical and biotech R&D spending has risen rapidly since 2005 and will continue to rise at least through 2009. In 2005, spending totaled $95.1 billion; next year’s spending is expected to reach nearly $130 billion. If trends continue, by 2010, R&D investment will have increased 50% in five years.

EU Phase I Programs Respond to Northwick Park Incident

The first human trial of TeGenero's TG1412 catapulted volunteer studies into the headlines for all the wrong reasons in March 2006. None of the six volunteers dosed with TG1412 at the Northwick Park site died, but they were seriously injured. The long-term effect of their injection with the anti-CD28 monoclonal antibody remains unknown. The lasting impact of the Northwick Park incident on the clinical trials industry in Europe is difficult to quantify.

Eye On: Depression

Depression, which is one of the most common diseases affecting the brain, is characterized by depressed or saddened mood, loss of interest or pleasure in normally enjoyable activities, changes in weight or appetite, fatigue, and sleep disturbances. According to the World Health Organization, at least 121 million people worldwide suffer from depression. CenterWatch has identified a pipeline of 15 drugs in various stages of development for depression. Many of these affect central neurotransmitters, whereas some have novel mechanisms of action.

To read the full articles for this issue or for more information on these and other breaking stories, please click here or contact us at cw.sales@thomson.com.

Recent Industry Personnel News

Nov 13, 2007 6:55:00 PM

Contract Research

Columbus, Ohio-based oncology CRO Prologue named Robert Stude the company’s new vice president of clinical operations. He will be responsible for monitoring services, site services, and clinical services groups. Prior to Prologue, Stude was senior director of monitoring and clinical services at Integrium Cardiovascular Research. He also held the position of senior director of clinical services for i3 Research. Prologue also promoted Phillip Banks to senior vice president of biostatistics and data management for the CRO. As a statistician, he is charged with overseeing the biostatistics, data management, and IT departments for Prologue.

Raleigh, N.C.-based CRO Quintiles hired cardiologist and clinical investigator Christopher Cabell, M.D.,  to provide expertise in its medical & scientific services group within the CRO’s clinical development operations. Cabell will also provide expertise for Quintiles ECG Services.

Pennsylvania-based CRO MDS Pharma Services hired cardiologist William Wheeler, M.D., to head the company’s cardiac monitoring and safety services division in North America. He will advise clients on study protocol design, cardiac monitoring and safety, and related regulatory issues. Wheeler was Spacelabs’ chief medical officer for its clinical trials services group. Prior to Spacelabs, he was vice president and chief medical officer for Aderis Pharmaceuticals, Wheeler also worked at Quintiles in the position of vice President of cardiovascular and critical care.

UK-based CRO Premier Research Group hired Tilly Beazeley to become the company’s business development director for its UK operations. Prior to Premier Research, Beazeley worked in data management and clinical operations at Omnicare. She also held business development positions at Chiltern.

Raleigh, N.C.-based INC Research appointed David Provost as vice president of late phase services. He will lead the unit’s the phase IV, patient registries, observational outcomes studies and safety surveillance studies unit as well.

Technology

eClinical provider etrials appointed Peter Benton to chief operating officer. Benton was held the position of interim COO since July. Prior to etrials, Benton held positions at Johnson and Johnson and brings 20 years of business experience to the role from various industries including life sciences, aerospace and industrial. Benton replaced Robert Sammis, who was made vice president of the firm’s client services group. Sammis served as chief operating officer since 2003.

UK-based eClinical company ClinPhone appointed Jason Liew as associate director of business development for Scandinavia. Liew’s role will be to develop client relationships in the region and carry out business development strategies for the regional market. He brings 13 years of lifescience industry experience. Prior to ClinPhone, Liew held positions at Statwood Ltd and BIAcore AB.

Top Stories for the Week of Nov. 5th 2007

Nov 9, 2007 5:00:14 PM

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Top News

Chiltern Builds on U.S. Presence with Acquisition of Clinical Trial Management Services

Known for its European presence, UK-based contract research organization (CRO) Chiltern International decided to boost its U.S. business with its acquisition of Clinical Trial Management Services (CTMS), a Tennessee-based CRO. This is the first acquisition for Chiltern since the CRO was purchased in July by Czura Thornton, a private investment group led by Antony Czura and Nick Thornton.

Phase Forward Buys Phase I Software Company Green Mountain Logic

Waltham, Mass.-based eClinical provider Phase Forward purchased Green Mountain Logic (GML), a Montpelier, Vt.-based software company and maker of phase I software product, LabPas. The software allows for electronic management of sample processing, reporting of clinical results and real-time data capture of patient vital signs.

Other breaking news...

Company Profile: An interview with Eric Lawitz, medical director and principal investigator, Alamo Medical Research

Past weekly article summaries for the year can be found in the CW Weekly Issue archives. To read the full articles for this issue or for more information on these and other breaking stories, please click here!

Drug for Excessive Sleepiness Shows Promise in Phase II Study

Nov 8, 2007 10:23:33 AM

By Tracy Trundle

Vanda Pharmaceuticals reported positive results from a phase II trial of VSF-173, an orally administered stimulant, for the treatment of excessive sleepiness. This randomized, double-blind, placebo-controlled trial enrolled  fifty-five subjects who received three doses of VSF-173 administered at 50 mg, 100 mg and 200 mg and placebo administered at 25 mg, 50 mg and 100 mg at the usual bedtime and at four hours after the first dose.

Efficacy was measured via a series of six Maintenance of Wakefulness Tests (MWT) given two hours apart starting one hour after the first dose, as well as the scheduled daytime recovery sleep following the night time and morning evaluations. Although not statistically significant, VSF-173 demonstrated improvement over placebo on the primary endpoint, the effect of the compound on the first four series of MWT tests.

The mean MWT sleep onset scores for the 50 mg, 100 mg and 200 mg, and placebo groups were 10.3, 12.9, 10.6 and 9.2 minutes, respectively. In a subset of 37 subjects with no observed impairment in pre-dose daytime wakefulness, the mean of all six MWT scores for the 50 mg, 100 mg and 200 mg groups showed improvements of 2.1, 3.4 and 2.1 minutes, respectively, compared to placebo. For the dose group of 100 mg, this observation of improvement was statistically significant (p < 0.05).

During the scheduled daytime recovery sleep, statistically significant, dose-dependent correlations were observed with the following polysomnography (PSG) parameters: increased number of awakenings, decreased sleep efficiency and total sleep time for the first third of the sleep period, and increased wake time after sleep onset for the first 3 hours of the sleep period (p<.05).

Vanda licensed VSF-173 from Novartis Pharma AG. Based on the results, Vanda plans to move forward with the development of the drug.

Tracy Trundle is a Research Analyst at CenterWatch.

Michael J. Fox Foundation Gets It and Gets It Done

Nov 7, 2007 11:09:48 AM

By Steve Zisson

The Michael J. Fox Foundation (MJFF) for Parkinson's Research gets it. They have figured out just how many bottlenecks there are for getting good research out of academia and to the patient. And Michael J. Fox is willing to put its money where it is needed to move along the drug development process.

It is no small task, but MJFF is headed in the right direction. The foundation has awarded $95 million for Parkinson’s disease (PD) research since its founding in 2000. Last week, MJFF kicked off its 2008 Target Validation effort. Under this annual program, the foundation will award up to $2 million for projects designed to “validate the therapeutic potential of scientific discoveries, pushing them one step closer to possible pharmaceutical industry investment and clinical trials.”

Maybe the most interesting step the foundation took this year is to enlist contract research organizations (CROs) in its efforts for the first time. The foundation and many observers understand that discoveries will be a long time in coming to clinical trials if everything is left up to academics.

MJFF has identified several CROs to help applicants gather critical information essential for ensuring studies are appropriately designed to validate or invalidate targets, such as dosing amounts and brain bioavailability.

Grant submissions must include the necessary pharmacokinetic and toxicology studies required to fully validate their targets, and the Request for Applications (RFA) includes a list of CROs equipped to perform these studies.

For investigators who are not able to carry out the required test in their own labs, MJFF has identified several CROs to help applicants gather this critical information. The expertise and resources provided by the CROs will allow awardees to obtain information critical to fully validating the proposed targets.

"Target Validation is emblematic of our Foundation's aggressive, 'get-it done' approach to driving PD drug development and speeding delivery of treatments that can improve patients' quality of life," said Katie Hood, interim chief executive officer of MJFF.

"Target Validation has a single purpose: to definitively assess the importance of promising targets by proving or disproving their druggability. This is a vital component of the Foundation's strategy to accelerate the pace of drug development by reducing industry's risk around investing in potential PD treatments."

Target Validation 2008 specifically seeks investigator-initiated applications to demonstrate that modulation of a specific cellular target (such as a gene or protein) results in a PD-relevant therapeutic response in an appropriate whole-animal mammalian model of PD. Of particular interest are targets whose manipulation holds the potential to treat the symptoms of PD, including both 'motor' and 'non-motor' symptoms such as cognitive dysfunction, autonomic dysfunction, sleep disorders and depression.

Also of interest are targets that could be used to protect or restore degenerating neurons, as well as those that can treat complications of current PD treatments (e.g., dyskinesias).

Target Validation pre-proposals are due by Dec. 18, 2007 and funding is anticipated by spring 2008.

A conference call with MJFF Research Programs staff to further clarify the aims and goals of this initiative will be held Nov. 27 at noon U.S. Eastern Time. Researchers wishing to participate in the call must RSVP to conferencecalls@michaeljfox.org and will receive an e-mail reply with call-in details.

Steve Zisson, managing editor of Thomson CenterWatch.

Parexel Reports 26% First Quarter Revenue Increase

Nov 5, 2007 4:17:00 PM

Boston, Mass.-based Parexel International reported service revenue increased 26.1% to $208.1 million for its first quarter of 2008 compared with $165.1 million during the same period of last year. The CRO ended the quarter with operating income of $16.5 million and margins of 7.9%. That compares with $11.3 million for the same period last year and a 6.9% margin. Net income for the quarter was $13.9 million compared with net income of $7 million.

Parexel’s Clinical Research Services (CRS) business constituted $159.3 million, or more than 75% of the company’s total revenue. Perceptive Informatics, the company’s technology division, contributed $18.3 million to the CRO’s top line and Parexel’s Consulting and Medical Communications Services unit brought in $30.5 million. The company is expecting full year’s revenue to be in the range of $890 to $920 million.

It completed its purchase of APEX Clinical Research, a CRO based in Taiwan that has operations throughout the Asia Pacific region. The company paid $50.9 million in cash for the remaining 20.3 million shares of APEX. The newly acquired company will become a wholly-owned subsidiary and will be named Parexel APEX International. Parexel had already purchased a minority interest in the CRO in April 2003.

Top Stories for the Week of Oct. 29th 2007

Nov 2, 2007 3:08:00 PM

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Top News

NEJM Takes Shots at CROs

A recent New England Journal of Medicine (NEJM) Perspective piece criticized the clinical trials industry for its reliance on contract research organizations (CROs). The piece describes the rapid growth in the CRO industry, questions the quality of research data it generates and cites various clinical trials that have shed some negative light on CRO-run studies.

PPD Continues Geographic Expansion While Reporting Strong Third Quarter

While reporting a 14% increase in its third quarter revenue, Wilmington, N.C.-based contract research organization (CRO) PPD opened new offices on four continents.The company launched offices in Sydney, Australia; Copenhagen, Denmark; Lima, Peru and Lisbon, Portugal. PPD has also expanded its presence in India with new office space.
    
Other breaking news...     

Company Profile: An interview with Ginger Clasby, vice president business development, Promedica International

Past weekly article summaries for the year can be found in the CW Weekly Issue archives. To read the full articles for this issue or for more information on these and other breaking stories, please click here!

Finally Out with the Old at PharmaNet?

Nov 2, 2007 12:10:28 PM

By Steve Zisson

Some equity analysts remained on edge about PharmaNet Development Group’s recent personnel changes during its third quarter conference call on Nov. 1. But should they be?

Some wondered if it was a case of the remaining higher ups from the former SFBC finally leaving or was if there were more to it and another shoe was going to drop. Late last week, PharmaNet Chairman Jack Levine and Director David Lucking resigned from the board.  And Chief Accounting Officer David Natan and the company agreed to a mutual separation, the company said.

The resignations were announced on Thursday, Oct. 22 and Jefferies & Company analyst David Windley followed up with a downgrade of PharmaNet to “Hold” from “Buy,” citing unexpected risk from the surprise announcement. In the conference call, analysts pressed PharmaNet president Jeffrey McMullen for more, but he was about as forthcoming as he could be given the nature of the personnel moves. The three who left were part of the old regime, the former SFBC.

After the downgrade, on Monday, Oct. 26, shares of PharmaNet fell $1.82, or 5.3%, to close at $32.42.

But shares were back up big time Thursday, jumping 13% to $35.95 after PharmaNet beat analysts’ expectations with earnings of $10 million, or 52 cents a share, more than double last year’s 20 cents a share, excluding items. The company also raised 2007 guidance to between $1.22 and $1.29 a share from the prior $1.12 to $1.24 a share.

For the quarter, overall revenue rose 20% to $124.4 million with direct revenue at nearly $100 million. The company also boosted 2007 guidance for direct revenue to $361 million to $365 million compared with its previous forecast of $342 million to $352 million.

It’s been a good year for PharmaNet and its investors with the stock up more than 60%, and with the old SFBC finally behind it, 2008 looks promising.

Steve Zisson, managing editor of Thomson CenterWatch.

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