RESEARCH TRIANGLE PARK, NORTH CAROLINA - May 8, 1997 - Quintiles Transnational Corp. (Nasdaq: QTRN) announced today the signing of a definitive agreement to acquire CerebroVascular Advances, Inc. (CVA), a clinical research company that is a leader in stroke clinical trials. The agreement calls for the merger of CVA into Quintiles in exchange for approximately 251,000 shares of Quintiles stock, subject to adjustment prior to closing, in a pooling of interests transaction. Completion of the acquisition, which is subject to CVA shareholder approval and the satisfaction of certain other conditions, is expected later this year. The transaction is expected to be neutral or slightly accretive to Quintiles' 1997 earnings per share.
CVA, based in San Antonio, Texas, recorded net revenue of $4.5 million and net income of $1.3 million in 1996. Quintiles plans to enter into employment agreements with members of CVA's management group, including President and Chief Executive Officer David Edwards and Chief Operating Officer Mike Dwyer, upon completion of the acquisition.
"This transaction adds substantially to Quintiles' broad range of therapeutic speciality capabilities," said Dennis Gillings, Ph.D., Chairman and Chief Executive Officer of Quintiles. "With aging populations in many regions of the world, we believe more resources will be devoted to develop drugs to prevent or counteract the debilitating effects of stroke. CVA has an outstanding record of clinical development in this area, and we're pleased to be adding its expertise and resources to Quintiles."
Edwards said of the agreement: "We're proud to be joining the world's leading contract pharmaceutical organization. We expect both CVA and Quintiles to benefit from this combination, as will our customers."
Quintiles Transnational Corp. is the market leader in providing full-service contract research, sales and marketing services to the worldwide pharmaceutical, biotechnology and medical device industries, and provides healthcare policy consulting and health information management services tothe healthcare industry. Quintiles is headquartered near Research Triangle Park, North Carolina, and has more than 8,000 employees in more than 60 operating units located in 22 countries.
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, the ability of conditions to closing to be satisfied, the ability of the combined businesses to be integrated with Quintiles' current operations, actual operating performance, the ability to maintain large client contracts or to enter into new contracts, and the actual costs of combining the businesses. 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 and its periodic reports.