Encorium CRO acquires Progenitor

Jul 19 2010

Encorium Group, Inc. (Nasdaq: ENCO), (the "Company") a full service multinational clinical research organization (CRO) conducting studies in over 30 countries for many of the world's leading pharmaceutical and biotechnology companies, today announced that it has acquired Progenitor Holdings AG, a corporation organized in Switzerland and its wholly-owned subsidiaries organized in Mexico, Panama, Argentina, Chile, Switzerland, India and Hong Kong for cash and stock valued at EURO 1.7 million, plus earn-out consideration of cash and stock with a value of up to EURO 1.5 million.  

Progenitor is a European headquartered emerging market clinical research organization providing international drug development services in emerging market regions.  Progenitor brings value and quality to its clients' clinical trial programs by offering emerging market geography together with experienced clinical staff in those regions.  

Executive Officer, Dr. Kai Lindevall said, "We are very pleased and proud to announce this transaction.  Progenitor is a prestigious emerging market company in the field of clinical research.  The acquisition of Progenitor will allow us to offer our clients access to the value of conducting clinical trials in emerging markets such as Latin America, India and Asia Pacific while providing excellent trial management and flexible study delivery.  The acquisition provides a key advancement of our strategic goal of becoming the world's leading vaccine clinical research organization.  We believe our combined experience in the vaccine field is the most impressive amongst medium sized CROs and that the potential of the combined organizations is substantial.  We are also happy to broaden our executive team with two experienced and successful entrepreneurial leaders, Dr. Renee E. Moore and Mr. Klaus D. Albrecht, the founders of Progenitor.  Renee and Klaus will play significant roles in the combined business and are expected to contribute significantly to the management of Encorium."  

Renee E. Moore, President and CEO of Progenitor said, "The strategic combination of the teams at Encorium and Progenitor is an exciting step in the creation of a vaccine focused CRO that can meet clients' needs internationally.  Together the organizations have been involved in over 70 vaccine and infectious disease trials with over 50,000 patients recruited in recent years.  We believe both entities commitment and focus on excellence in vaccine trial delivery will result in a value added solution for our customers desiring to run trials throughout Europe and the emerging markets.  

"We are truly inspired by the momentum that exists due to the complementary list of customers of the two organizations, which already includes many important pharmaceutical and biotechnology companies specializing in vaccine drug development.  Furthermore, we are excited by the opportunity to work with the exceptional leadership team at Encorium, including Dr. Kai Lindevall and his executive team."