PAREXEL INTERNATIONAL COMPLETES ACQUISITION OF APEX INTERNATIONAL CLINICAL RESEARCH CO., LTD.
BOSTON, MA, September 26, 2007 – PAREXEL International Corporation (NASDAQ: PRXL), a leading global biopharmaceutical services organization, today announced the successful completion of the acquisition of Taiwan–based APEX International Clinical Research Co., Ltd. (“APEX”). The acquisition strengthens PAREXEL’s global capabilities, providing clients with a wide range of clinical research service offerings throughout the Asia-Pacific region, including mainland China, Hong Kong, India, Taiwan, Singapore, Indonesia, South Korea, Malaysia, Thailand, the Philippines, New Zealand, and Australia.
PAREXEL (Taiwan), Inc., a wholly owned subsidiary of PAREXEL, initiated a Tender Offer on June 29, 2007 to purchase all of the issued and outstanding shares of common stock of APEX. On September 7, 2007, the Tender Offer closed and PAREXEL acquired 20.3 million shares of common stock of APEX, representing 93.9% of APEX’s total issued and outstanding shares. Pursuant to the terms of the Tender Offer, the Company paid New Taiwan Dollars (NT) of $82.94 or U.S. Dollars (USD) of approximately $2.51 for each APEX share of common stock tendered, for a total purchase price of approximately NT $1.7 billion, which equates to USD of approximately $50.9 million. The name of the new entity is PAREXEL APEX International.
Four years ago PAREXEL purchased a minority interest in APEX after conducting a considerable amount of due diligence to ensure that the company’s programs and standards met PAREXEL’s rigorous quality guidelines. During this time, APEX established a strong track record of success, carrying out numerous clinical studies with PAREXEL.
“The Asia-Pacific region is becoming increasingly important and attractive for a wide range of clinical development activities,” stated Josef von Rickenbach, Chairman and Chief Executive Officer of PAREXEL International. “Several factors are driving client demand for clinical research services in the Asia-Pacific region including established and sophisticated healthcare systems in many countries, the availability of highly trained professionals, and attractive end markets for biopharmaceutical products. We believe that the acquisition of APEX is of great strategic value, and combined with PAREXEL’s existing presence in Japan, India, and Australia, will make PAREXEL a formidable competitor and one of the leading providers of biopharmaceutical services in the Asia-Pacific region.”
Mr. von Rickenbach continued, “Our long-term alliance with APEX and subsequent acquisition reinforces our commitment to providing high quality clinical development services in the Asia-Pacific region. By fully integrating APEX into PAREXEL’s global operations, we will enhance our ability to help clients more quickly achieve their goals of bringing important therapies to patients not only in the Asia-Pacific region, but also throughout the rest of the world.”
“Our diverse client base will greatly benefit from the combination with PAREXEL, which will provide a broader global scope and the ability to offer a wider array of capabilities for clinical programs,” said Albert Liou, founder of APEX and newly-appointed Corporate Vice President and General Manager of PAREXEL APEX International. “The APEX team is eager to combine PAREXEL’s deep experience in clinical development with APEX’s extensive knowledge of medical and clinical development practices and approaches that are specific to the Asia-Pacific region.”
Through the acquisition of APEX, PAREXEL augments its service offering with additional capabilities in key areas, including:
- Good Clinical Practice (GCP)-compliant services, especially in late phases of clinical development, in 11 Asia-Pacific countries, including China and several other emerging geographies
- Clinical and regulatory experts with local experience
- Medical expertise and access to patient populations across a wide range of complex and important therapeutic areas, including cardiology, rheumatology, endocrinology, oncology, infectious disease, and neurology
PAREXEL APEX International will host an Opening Ceremony on October 4, 2007 in Taiwan for clients and government officials to celebrate the combination of PAREXEL and APEX. Guest speakers will include Josef von Rickenbach, Albert Liou, and local dignitaries.
PAREXEL International Corporation is a leading global bio/pharmaceutical services organization, providing a broad range of knowledge-based contract research, medical communications and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. Perceptive Informatics, Inc., a subsidiary of PAREXEL, provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 65 locations throughout 51 countries around the world,and has approximately 7,000 employees. For more information about PAREXEL International visit www.PAREXEL.com.
This release contains "forward-looking" statements regarding future results and events. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," "appears," “estimates,” “projects,” “targets,” and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating improvements resulting from recent restructurings; the loss, modification, or delay of contracts which would, among other things, adversely impact the Company’s recognition of revenue included in backlog; the Company's dependence on certain industries and clients; the Company's ability to win new business, manage growth and costs, and attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses or enter into new lines of business, including APEX; the impact on the Company’s business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations and other international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company’s Annual Report on Form 10-K for the Fiscal Year ended June 30, 2007 as filed with the SEC on August 27, 2007, which “Risk Factors” discussion is incorporated by reference in this press release. The forward-looking statements included in this press release represent the Company’s estimates as of the date of this release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this press release.
PAREXEL is a registered trademark of PAREXEL International Corporation, and Perceptive Informatics is a trademark of Perceptive Informatics, Inc. All other names or marks may be registered trademarks or trademarks of their respective business and are hereby acknowledged.