Covalent Group, Inc. Announces $2.6 Million of New Business Awards
09 November 2004 - 1:00PM
PR Newswire (US)
Covalent Group, Inc. Announces $2.6 Million of New Business Awards
WAYNE, Pa., Nov. 9 /PRNewswire-FirstCall/ -- Covalent Group, Inc.
(NASDAQ: CVGR), a leader in the design, development, and management
of complex clinical trials and patient disease registries for many
of the world's leading pharmaceutical and biotechnology companies
today announced that it has been awarded multiple new business
contracts with an aggregate value of $2.6 million. The contracts
involve a mix of new projects and expansion of current studies with
six different clients. The therapeutic areas covered by the studies
include cardiovascular diseases, nephrology, metabolic bone
disease, and vaccines. The services to be provided are for protocol
consulting and design, project management, study site management,
field operations, data management, biostatistics, and medical
writing. Revenue recognition begins this quarter on a proportional
performance basis and will extend from 6 to 24 months depending on
the specific project. Kenneth M. Borow, M.D., President and Chief
Executive Officer, commented, "These new business awards represent
work with five repeat customers and one new client. In each case,
Covalent is providing a mix of consultative and operational
services. Overall, the contracts include work involving all phases
of the clinical research process. Thus, Covalent remains actively
involved across multiple therapeutic areas in every aspect of
pharmaceutical and biotechnology clinical Research and Development
ranging from Phase 1 through Phase 4. With seven weeks left in the
fourth quarter, our 2004 year- to-date total new business awards
are $21.5 million. This approximates our 2003 total of $21.7
million." About Covalent Group Covalent Group is a clinical
research organization that is a leader in the design and management
of complex clinical trials for the pharmaceutical, biotechnology
and medical device industries. The Company's mission is to provide
its clients with high quality, full-service support for their
clinical trials. Covalent offers therapeutic expertise, experienced
team management and advanced technologies. The Company has clinical
trial experience across a wide variety of therapeutic areas such as
cardiovascular, endocrinology/metabolism, diabetes, vaccines,
biologics, gene therapy, immunology, neurology, oncology,
infectious diseases, gastroenterology, dermatology, hepatology,
womens' health and respiratory medicine. Covalent believes that its
leadership in the design of complex clinical trials, its
application of innovative technologies, therapeutic expertise and
commitment to quality offer its clients a means to more quickly and
cost effectively develop products through the clinical trial
process. With its wholly-owned international subsidiary, Covalent
Group, Ltd., as well as its Strategic Partners operating in South
America, Eastern Europe, Russia and Ukraine, and Australia, New
Zealand, and the Asia-Pacific region, Covalent is able to meet the
global drug development needs of its clients. This press release
contains forward-looking statements identified by words such as
"estimate," "project," "expect," "intend," "believe," "anticipate"
and similar expressions. Actual results might differ materially
from those projected in, expressed in or implied by the
forward-looking statements. Potential risks and uncertainties that
could affect the Company's future operating results and financial
condition include, without limitation: (i) our success in
attracting new business and retaining existing clients and
projects; (ii) the size, duration, and timing of clinical trials;
(iii) the termination, delay or cancellation of clinical trials;
(iv) the timing difference between our receipt of contract
milestone or scheduled payments and our incurring costs to manage
these trials; (v) outsourcing trends in the pharmaceutical,
biotechnology and medical device industries; (vi) the ability to
maintain profit margins in a competitive marketplace; (vii) our
ability to attract and retain qualified personnel; (viii) the
sensitivity of our business to general economic conditions; (ix)
other economic, competitive, governmental and technological factors
affecting our operations, markets, products, services and prices;
and (x) announced awards received from existing and potential
customers are not definitive until fully negotiated contracts are
executed by the parties. Additional information concerning factors
that could cause actual results to materially differ from those in
forward-looking statements is contained in Covalent Group's SEC
filings, including its Annual Report on Form 10-K for the year
ended December 31, 2003 and other periodic reports under the
Securities Exchange Act of 1934, as amended, copies of which are
available upon request from Covalent Group's investor relations
department. Investor Relations Contact Lawrence Hoffman, CPA, Esq.
CFO, Covalent Group, Inc. (610) 975-9533
http://www.covalentgroup.com/ DATASOURCE: Covalent Group CONTACT:
Lawrence Hoffman, CPA, Esq., Investor Relations Contact and CFO of
Covalent Group, Inc., +1-610-975-9533 Web site:
http://www.covalentgroup.com/
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