RESEARCH TRIANGLE PARK, N.C. - April 12, 1999 - Quintiles Transnational Corp. (Nasdaq: QTRN) announced today the acquisition of Medlab Pty Ltd and the assets of the Niehaus and Botha (N&B) partnership, both based in Pretoria, South Africa, further expanding its globally integrated network of centralized clinical laboratories.
N&B's outstanding academic and scientific reputation has made it South Africa's leading clinical laboratory, especially in the Pretoria area, where its market share exceeds 25 percent. Medlab performs all of the laboratory work for N&B, which was founded in 1985 by Dr. Charles Niehaus, Dr. AndrT Botha and Mr. AndrT Hamman.
N&B and Medlab's distinctive capabilities include supporting the central laboratory needs of pharmaceutical and biotechnology companies, and in-depth expertise in clinical pathology and clinical microbiology.
The acquisition was made in exchange for Quintiles stock in a pooling of interests transaction that is expected to be neutral to Quintiles' earnings per share. Medlab and N&B will be integrated into the Quintiles CRO service group as a specialty business unit.
"This acquisition adds another component to Quintiles' global network of harmonized clinical trials laboratories," said Ludo Reynders, Ph.D., Chief Executive Officer of Quintiles CRO. "N&B and Medlab also provide Quintiles with a well-established, highly reputable and growing clinical pathology capability.
"The addition of N&B and Medlab complements and strengthens Quintiles Clindepharm and Quintiles ClinData, our existing South African CRO operations. The combined know-how, customer base and infrastructure of these operations offers a great opportunity to make a major impact on clinical research in South Africa."
Medlab has 340 full-time employees, including pathologists, medical technologists and administrative staff, and 110 part-time employees at its 27,000-square-foot facility in Pretoria.
"Over the past 15 years we have built an excellent reputation for service and sound financial management, and have forged relationships with medical practitioners and specialists throughout South Africa," said Dr. Charles Niehaus, founding partner of N&B. "This relationship with Quintiles opens the door to further development within South Africa and to the prospect of working for new customers attracted to South Africa by Quintiles' presence and reputation."
N&B's offices are located at 1st Flr Pencardia-1, Pretorius Street 509, 0083 Arcadia, Republic of South Africa. Telephone +27 12 341 2350; fax +27 12 44 9088.
In 1998, South Africa's pharmaceutical industry invested about $60 million in clinical research and development, according to the South African Association of Pharmaceutical Physicians. Analysts estimate that this will grow by more than 25 percent annually over the next two to three years. The South African clinical pathology market is valued at $322 million, according to the National Pathology Group.
Quintiles Transnational Corp. is the market leader in providing a full range of integrated product development and commercialization services to the pharmaceutical, biotechnology and medical device industries. Quintiles also is a leader in the electronic data interchange and healthcare intelligence industry and provides healthcare policy consulting to healthcare and governmental organizations worldwide. Quintiles is headquartered near Research Triangle Park, North Carolina. With more than 16,000 employees worldwide and offices in 31 countries, Quintiles operates through specialized work groups dedicated to meeting customers' individual needs. Visit the Quintiles Transnational web site at www.quintiles.com.