RESEARCH TRIANGLE PARK, NORTH CAROLINA - June 4, 1997 - Quintiles Transnational Corp. (Nasdaq: QTRN) announced today the acquisition of Butler Communications Inc. and its affiliated companies, including Butler Clinical Recruitment Inc., which specialize in communication programs to accelerate the recruitment of patients for clinical trials.
Quintiles acquired the Butler businesses, based in Raleigh, N.C., in exchange for approximately 214,000 shares of Quintiles stock in a pooling of interests transaction. In addition, Quintiles assumed approximately $2.8 million in existing Butler Clinical Recruitment debt.
The transaction is expected to be neutral or slightly accretive to Quintiles' 1997 earnings per share. A leader in the field of accelerated patient recruitment for clinical trials, Butler generated net revenue of approximately $14 million in 1996. Quintiles has entered into employment agreements with members of Butler's management group, including President and CEO Robert B. Butler and Executive Vice President and Chief Operating Officer Bryan F. McIntyre.
"Rapid recruitment of qualified patients for clinical trials is a key element in improving the drug development process," said Dennis Gillings, Ph.D., Chairman and Chief Executive Officer of Quintiles. "Butler facilitates rapid recruitment of patients, which is crucial to meeting the competitive needs of our customers and getting drugs to market faster."
Robert Butler said of the agreement: "This transaction should allow us to expand our recruitment services much more quickly, and to a much larger group of customers. We're pleased to be joining the worldwide Quintiles family."
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 to the healthcare industry. Quintiles is headquartered near Research Triangle Park, North Carolina, and has more than 8,000 employees in 62 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 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.