RESEARCH TRIANGLE PARK, NC - March 6, 1995 - Quintiles Transnational Corp. (NASDAQ-NNM:QTRN) announced that a subsidiary, Quintiles Scotland Ltd., today completed agreements to acquire certain assets of a drug development facility located in Edinburgh, Scotland from Syntex Pharmaceuticals Limited, a member of the Roche group based in Basle, Switzerland. Quintiles previously had announced that it had entered into a letter of intent to acquire the facility.
The assets consist primarily of a modern 300,000 square foot building, and related equipment previously used by Syntex as an internal service center to support its drug development activities. Quintiles has made a purchase commitment valued at approximately $20 million with payment due in December 1999. Quintiles will employ approximately 200 existing Syntex employees. Syntex agreed to pay Quintiles approximately $5 million as a facility commitment fee and approximately $13 million per year for three years in return for services to be provided by Quintiles. Quintiles also entered into long-term ground lease obligations at market rates.
Dennis Gillings, Chairman and Chief Executive Officer of Quintiles, said, "This facility expands our capability for fully-integrated drug development contracts. What this means for clients is that Quintiles can take a new drug discovered in the labs of biotechnology and pharmaceutical companies through the entire development process, including regulatory submissions for marketing approval."
The agreement is in keeping with Quintiles' growth strategy for providing comprehensive worldwide drug development services. Specifically, the Scottish facility will allow Quintiles to formulate and package clinical trial materials for blinded studies, expand clinical research and data management services in Europe, provide additional pre-clinical drug development facilities, and build a European clinical diagnostic laboratory over the long term. Gillings also commented that the arrangement is expected to have a modest positive impact on 1995 earnings because of increased capacity.
Earlier this month, Quintiles reported record year end earnings and more than $90 million in net revenue. The company also reported recently that it has expanded operations in Europe, Japan and Australia. In addition, Quintiles opened operations in Singapore to reach the East Asian market. The company serves pharmaceutical and biotechnology companies as they develop new products worldwide. Quintiles' professional services include clinical trials management, data management, biostatistical analysis, centralized clinical trial laboratory services, pre-clinical testing, study design, strategic and regulatory consulting, and health economics consulting. Headquartered in Research Triangle Park, North Carolina, the company now has 18 operating units and two sales offices in ten countries.