Synectics Regulatory News (SNX)

24 Oct 2006 07:01

Synexus Clinical Research PLC24 October 2006 SNX.L Synexus Clinical Research PLC Acquisition of Clinical Research Centers SA (PTY) Ltd Synexus Clinical Research PLC ('Synexus' or 'Company'), the clinical trialsservices group, today announces that it has entered into a conditional agreementto acquire the entire issued share capital of Clinical Research Centers SA (PTY)Ltd ('CRC') for an initial consideration of £0.81m plus a maximum deferredconsideration of £0.98m. The acquisition is conditional upon approval beingreceived in respect of certain terms of the transaction from the South AfricanReserve Bank. This acquisition, the Company's third since joining AIM in November 2005,follows its stated strategy to build a multi-country operation, replicating itsUK capability of recruiting large numbers of patients into later stage clinicaltrials for the pharmaceutical industry. Information on CRC CRC is a Site Management Organisation based in South Africa providing clinicaltrial services, particularly the recruitment and subsequent management ofpatients onto later stage clinical trials for the pharmaceutical industry. Benefits of the acquisition • CRC represents a further opportunity for the Company to exploit thegrowing clinical trials and patient recruitment markets in emerging economies. • The acquisition of CRC, a well-established business operating in thesame area of activity as Synexus, complements the organic growth of the Company. • The acquisition of CRC is expected to be earnings accretive forSynexus for the year to 31 March 2007. • The acquisition both broadens the therapeutic offering of Synexus andprovides access to a significant pool of previously untreated patients forclinical trials Details of the acquisition The maximum consideration of £1.80m is satisfied as follows: • £0.81m payable on completion (of which £0.25m is payable by way of theissue of 266,109 new ordinary shares in Synexus and the remainder in cash). • £0.25m deferred consideration payable in cash after completion of theSynexus year end audit. • Up to a further £0.74m payable in cash and shares, dependent on thelevel of profit after tax of CRC for the year ending 31 March 2008. In addition to its core later stage clinical trials business, CRC owns a 49%interest in AddClin Research (Pty) Ltd ("AddClin"), a joint venture with AdcockIngram, the large South African multinational pharmaceutical business. Addclincarries out bioequivalence and pharmacokinetic studies for South African andinternational generics companies. Commenting on the acquisition, Michael Fort, Chief Executive of Synexus said: "We are delighted with the acquisition of CRC which not only extends ourtherapeutic range but also gives us a footprint in the Southern Hemisphere wherewe will be able to conduct contra-seasonal studies to those in the NorthernHemisphere into conditions such as hay fever and asthma, thereby extending ouroffering in these areas. "The interest in the joint venture in Phase I studies with Adcock Ingram is alsoexciting as this is not only a link with a large multinational healthcarecompany but is also a low risk entry into the early stage market. "We are especially pleased to welcome CRC's founder and managing director, DrSanet Aspinall to the operations board of Synexus Clinical Research plc. Herexperience at the highest level within the medical community in South Africawill be of considerable value to Synexus." Note An exchange rate of £1 : 13.95 Za Rand has been used in this announcement inrelation to the financial information on CRC. All payments of cash are to bemade in Za Rand. Press enquiries Synexus Clinical Research plc Tel: +44 (0)1257 230723Michael Redmond, ChairmanMichael Fort, Chief Executive Biddicks - Financial Public Relations Tel: +44 (0)20 7448 1000Zoe Biddick Brewin Dolphin Securities Tel: +44 (0)845 270 8600Mark Brady/Sarah Kent This information is provided by RNS The company news service from the London Stock Exchange