Bio-Pharm Clinical Services and Affinity Biotech Inc. announcedThursday that they have signed a definitive agreement tomerge. They initially announced that they had signed a letterof intent for the merger in December (see BioWorld, Dec. 3,1993).

The deal consists of a $50 million transaction involving bothstock and a cash investment from venture capital sources.Affinity (NASDAQ:AFBI) of Aston, Pa., and Bio-Pharm of BlueBell, Pa., said three institutional investment firms have madecommitments for equity investments totaling $4 million in Bio-Pharm at or immediately prior to the consummation of themerger, with the Bio-Pharm securities to be converted to anadditional 1.2 million shares of Affinity common stock in themerger.

S.R. One Ltd. will invest $1.3 million, CIP Capital L.P., an entitycontrolled by Affinity chairman Winston J. Churchill, willcontribute $1.3 million and the T. Rowe Price New HorizonsFund will add another $1.5 million.

Bio-Pharm, a clinical research organization, has also completedits acquisition of European Pharmaceutical InvestigationConsultants Ltd., a clinical research organization based in theUnited Kingdom with revenues of approximately $6 million forthe year ended Dec. 31.

The Affinity/Bio-Pharm merger should be finalized by March31. The new company will be 55 percent owned by Bio-Pharmstockholders and 45 percent owned by Affinity shareholders.-- Brenda Sandburg

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