TOKYO and RESEARCH TRIANGLE PARK , N.C. , U.S.A. – June 22, 2004 – Quintiles Transnational Corp. and Mitsui & Co., Ltd., today announced that they expect Mitsui to become a 20% shareholder in Quintiles Transnational Japan K.K. (Quintiles Japan) in a transaction designed to accelerate Quintiles Japan's growth and expand Quintiles and Mitsui's strategic alliance capabilities in pharmaceuticals, biotechnology and healthcare.
Mitsui is expected to acquire the 20% interest in Quintiles Japan by purchasing newly issued common and preferred shares from Quintiles Japan as well as common shares from Quintiles. Quintiles and Quintiles Japan are expected to receive a total of approximately 8.7 billion yen (approximately $80 million) in the transaction, with Quintiles having the ability to receive up to an additional 2.0 billion yen (approximately $18 million) based on Quintiles Japan's future financial performance.
The transaction is subject to execution, expected later today, and satisfaction of customary contractual conditions. Closing is anticipated to occur shortly.
"Quintiles' commitment to the Japanese market and its performance in providing clients with world-class solutions is impressive," said Osamu Mori, Chief Operating Officer, Financial Markets Unit of Mitsui & Co., Ltd. "I believe Mitsui will become an important partner for Quintiles Japan by contributing both tangible and intangible business resources. This transaction fits well with our goal to invest in first-rate international companies in the healthcare and service sectors and, in particular, to enhance those companies' Japanese operations."
Quintiles and Mitsui believe that Mitsui's vast network of customers and business partners will significantly expand Quintiles Japan's ability to develop strategic customer alliances and generate new investment opportunities.
"Mitsui's investment represents a major step forward in our ability to accelerate our growth in Japan," said Dennis Gillings, Ph.D., Chairman and CEO of Quintiles Transnational Corp. "Mitsui's outstanding reputation and strong network of business relationships will, I believe, help us to more rapidly expand our services and serve more customer projects in the crucial Japanese pharmaceutical market, which is the world's second largest."
Quintiles Japan Chairman Derek Winstanly said: "This transaction with Mitsui, one of the world's premier companies, raises Quintiles Japan's profile significantly. With Mitsui we have a great partner and enhanced resources to implement our aggressive plans for growth.
"Our growth plans include expansion of our core Product Development and Commercial services and new initiatives, particularly those involving partnering agreements with companies seeking to enter or grow in Japan and with Japanese companies seeking to expand globally."
Mitsui is also an equity owner in Pharma Services Holding, Inc., the parent company of Quintiles Transnational Corp.
As part of this transaction, Mitsui is expected to nominate two directors (one of whom will be unaffiliated with Mitsui) to a seven-member Quintiles Japan Board and to provide corporate development assistance to Quintiles Japan through the addition of one of its executives with extensive corporate development experience to the Quintiles Japan management team.
With global sales of $112 billion in 2003, Japan-based Mitsui is one of the world's leading and most diversified trading companies, with a vast network of customers in Japan and worldwide. Mitsui is ranked 11th in the 2003 Fortune Global 500 list of the world's largest companies.
Quintiles helps improve healthcare worldwide by providing a broad range of professional services, information and partnering solutions to the pharmaceutical, biotechnology and healthcare industries. Headquartered near Research Triangle Park, North Carolina, Quintiles has offices in 50 countries and is the world's leading pharmaceutical services organization. For more information visit the company's Web site at www.quintiles.com.
This press release contains "forward-looking statements" regarding Quintiles and Quintiles Japan that involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the risk that the transaction will not close because of the inability of the parties to satisfy all of the conditions to closing or otherwise; the risk that Quintiles Japan's business will not grow as anticipated; that the Mitsui transaction and relationship will not have the intended positive effect; our ability to expand our, or Quintiles Japan's, strategic alliance capabilities in pharmaceuticals, biotechnology or healthcare as a result of this transaction; our actual operating performance and the actual operating performance of Quintiles Japan; our ability, or Quintiles Japan's ability, to capitalize on Mitsui's significant resources and expertise; and the ability of Quintiles Japan to more rapidly expand its services and serve more customer projects in the Japanese pharmaceutical market. Additional factors that could cause actual results to differ materially are discussed in Quintiles' recent filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K, its Form 8-Ks, and its other periodic reports, including Form 10-Qs.