FUL.L Regulatory News (FUL)

21 Feb 2007 07:00

Fulcrum Pharma PLC20 February 2007 FULCRUM PHARMA PLC ("the Group" or "the Company") Successful Completion of Quadramed Earn Out Further Expansion of Edinburgh Office Fulcrum Pharma plc (AIM:FUL), the drug development and strategic outsourcingservices company, is pleased to announce the results of the earnout relating tothe acquisition of Quadramed Limited ("Quadramed"). Quadramed was acquired at the beginning of February 2006 and was the first stepin the delivery of Fulcrum's strategic objective to significantly expand itscapability in pharmaceutical regulatory services. As reported in the company's Annual Report for 2006, Quadramed was an importantcontributor to Fulcrum's performance and sales growth. During the earnout periodQuadramed's trading has been better than anticipated, with its fee income inearnout period expected to show a 50% increase over the corresponding twelvemonths in the previous year. As a result of Quadramed's strong performance, the maximum deferredconsideration of £500,000 is payable in convertible loan notes which are to beissued as at 28th February 2007. The convertible loan notes are repayable as to£250,000 on 31st August 2007 and to £250,000 on 28th February 2008. Interest ispayable on the loan notes at 2% over bank base rate and the terms of conversionare that the holders of the notes shall be entitled to convert the notes intoordinary shares in the capital of the Company on the basis of one new ordinaryshare per 6 pence of loan note principal. As part of the Company's planned organic growth, Quadramed has also takenfurther premises alongside Fulcrum's existing Edinburgh office to expand itsservices, in particular in regulatory compliance. These premises have beenintegrated to share common services. Quadramed has received grant assistance ofup to £130,000 from the Scottish Executive as part of its expansion. The enlarged Edinburgh office, located at the Heriot-Watt University ResearchPark, will further complement Fulcrum's other European offices in HemelHempstead, Midhurst and Strasbourg and will allow the Group to continue thegrowth of its drug development and regulatory resources . Jon Court, Chief Executive of Fulcrum Pharma said: "I am very pleased with thesuccess of the Quadramed acquisition. The further expansion of the Edinburghoffice will enable our business to increase both the range of its services andthe volume of work for our international client base." FOR FURTHER INFORMATION, PLEASE CONTACT: Fulcrum Pharma PlcJon Court, Chief Executive 0870 7107152 About Fulcrum Pharma plc Fulcrum Pharma plc is a drug development and regulatory services business thatprovides global expertise to achieve drug development and regulatory approvalmilestones. Fulcrum Pharma offers immediate access to a highly credible, integrateddevelopment team that provides strategic and operational leadership required toensure that new drugs move smoothly from discovery research to product approval Fulcrum Pharma is listed on the AIM Market of the London Stock Exchange havingsuccessfully floated in March 2000. This information is provided by RNS The company news service from the London Stock Exchange