A Medical Device Daily
Encorium Group (Wayne, Pennsylvania), a multinational clinical research organization (CRO) said it has completed the sale of its U.S. business to Pierrel Research USA (Philadelphia), a subsidiary of Pierrel (Milan, Italy), an international CRO. The purchase price was $2.7 million, comprised of $80,000 in cash as well as the assumption of $2.6 million in liabilities.
In connection with the consummation of the sale, Pierrel has entered into a lease with the landlord of the company's U.S. headquarters in Wayne, Pennsylvania, pursuant to which the landlord has agreed to release the company from its remaining lease obligations of roughly $3.4 million for a termination fee of $235,000.
As of the closing of the transaction, CEO David Ginsberg has joined Pierrel Research USA as its CEO. In addition, Pierrel said it has extended employment to substantially all of Encorium's U.S. employees. As a result, Pierrel expects that the U.S. operations will continue largely unchanged and that it will be able to seamlessly continue to deliver the services our customers depend on. Encorium has obtained authorizations from its affected customers allowing the company to transfer the provision of services to Pierrel.
In conjunction with the sale of the U.S. assets, Encorium also reported the departure of Linda Nardone, PhD, its COO.
Encorium says it specializes in the design and management of complex clinical trials and patient registries for the pharmaceutical, biotechnology and medical device industries.
In other dealmaking activity, Laboratory Corporation of America (LabCorp; Burlington, North Carolina) and Monogram Biosciences (South San Francisco, California) reported that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, or HSR Act, applicable to the acquisition of Monogram by LabCorp has expired with no action by either the Federal Trade Commission or the U.S. Department of Justice.
LabCorp commenced a tender offer on July 1 for all of the outstanding shares of common stock of Monogram for $4.55 a share in cash, or a total of about $155 million. The deal was first disclosed last month (Medical Device Daily, June 24, 2009).
Consummation of the tender offer remains subject to other customary closing conditions, including satisfaction of the minimum tender condition under the agreement and plan of merger entered into by LabCorp and Monogram on June 22.