RESEARCH TRIANGLE PARK, N.C. - November 30, 2000 - Quintiles Transnational Corp. (Nasdaq: QTRN), a global leader in pharmaceutical services, today announced that it has signed a letter of intent with Pharmacia Corporation to negotiate a definitive agreement under which Quintiles will acquire Pharmacia's clinical development unit in Stockholm, Sweden.
Under the proposed agreement, Pharmacia would transfer to Quintiles development projects currently planned or under way in Stockholm, and Pharmacia would commit to using Quintiles for a specified level of services over a multi-year period. The proposed transaction would guarantee Quintiles revenues over four years for continued support and completion of ongoing Pharmacia development projects. The agreement includes plans for employees of certain Pharmacia departments based in Stockholm, Sweden, to transfer their employment to Quintiles. The deal, which is subject to negotiation of a definitive agreement and review and approval by appropriate regulatory authorities, is targeted for completion by year end 2000 or early 2001.
The announcement follows a plan announced by Pharmacia earlier to set a new strategic direction for its Research and Development operations in Sweden. One of the key elements was the transfer of clinical development resources to an external company.
Ludo Reynders, Chief Executive Officer, Clinical Development Services, Quintiles, said: "We are proud to be considered by Pharmacia to acquire their clinical development unit in Sweden. This proposed agreement marks the further development of a long-term relationship with this leading pharmaceutical company, and also confirms the strategic role leading CROs can play in the pharmaceutical sector. Like the previous relationships we've forged with Aventis in the U.S., and Roche in Europe, this partnership exemplifies the corporate business solutions we are offering our customers at a time of significant transformation of the industry. We are pleased to be complementing our already strong employee base in Sweden with the exceptional skills and experience of the employees joining from Pharmacia."
Upon completion of the proposed transaction, the Stockholm employees will be part of Quintiles' Swedish operations, and will take on projects for both Pharmacia and other pharmaceutical customers worldwide. With the addition of Pharmacia's Stockholm site, Quintiles will gain further expertise and experience in clinical pharmacology, clinical research, biostatistics and data management, with a focus on ophthalmology, growth hormones, cardiovascular medicine, and urology, among others.
Quintiles Transnational is the world's leading provider of information, technology and services to bring new medicines to patients faster and improve healthcare. Headquartered near Research Triangle Park, North Carolina, Quintiles employs a global workforce of more than 19,000 in 38 countries. Quintiles Transnational is a member of the S&P 500 and Fortune 1000. For more information visit the company's Web site at www.quintiles.com.
Information in this press release contains "forward-looking statements." These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, whether the binding agreement is reached, whether the proposed transaction is completed, actual operating performance if the transaction is completed, and the ability to maintain large client contracts or to enter into new contracts. Additional factors that could cause actual results to differ materially are discussed in the company's recent filings with the Securities and Exchange Commission, including but not limited to its S-3 and S-4 Registration Statements, its Annual Report on Form 10-K, its Form 8-Ks, and its other periodic reports, including Form 10-Qs.