WAYNE, Pa., Oct. 3 - Covalent Group, Inc. (Nasdaq: CVGR), a leader in the design, development, and management of complex clinical trials and patient registries for many of the world's leading pharmaceutical and biotechnology companies, today announced that it has been awarded multiple new business contracts with an aggregate value of $1.5 million. These contracts are for consulting services, clinical operations, biostatistics, and medical writing. The therapeutic areas covered include cardiovascular, nephrology, pulmonary hypertension, vaccines, and urology. Revenue for these contracts will be recognized on a proportional performance basis as services are performed and will extend over approximately 12 months depending on the specific project.
Kenneth M. Borow, M.D., Covalent's President and Chief Executive Officer, commented, "This is the first in a series of new business announcements that we expect to release during the next few weeks. Our new business pipeline is growing, and we are now beginning to see conversion from potential opportunities to contracts. Many of our most recent business development efforts relating to Patient Disease Registries are maturing to the point where we expect new contracts can be signed in the near future. We are making progress in numerous discussions that are targeted at increasing our global presence and broadening our therapeutic area capabilities. Throughout the remainder of 2005, we expect continued increases in our backlog and cash position as well as improved operating results. We anticipate that the net effect of our efforts will be a return to top-line growth and profitability in the future."
About Covalent Group, Inc.
Covalent Group is a clinical research organization that is a leader in the design and management of complex clinical trials and Patient Disease Registries for the pharmaceutical, biotechnology and medical device industries. The Company's mission is to provide its clients with high quality, full-service support for their clinical trials. Covalent offers therapeutic expertise, experienced team management and advanced technologies. The Company has clinical trial experience across a wide variety of therapeutic areas such as cardiovascular, endocrinology/metabolism, diabetes, vaccines, biologics, gene therapy, immunology, neurology, oncology, infectious diseases, gastroenterology, dermatology, hepatology, womens' health and respiratory medicine. Covalent believes that its leadership in the design of complex clinical trials, its application of innovative technologies, therapeutic expertise and commitment to quality offer its clients a means to more quickly and cost effectively develop products through the clinical trial process. With its wholly-owned international subsidiary, Covalent Group, Ltd., as well as its Strategic Partners operating in various regions around the world, Covalent is able to meet the global drug development needs of its clients. For more information, please visit http://www.covalentgroup.com.
This press release contains forward-looking statements identified by words such as "estimate," "project," "expect," "intend," "believe," "anticipate" and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Potential risks and uncertainties that could affect the Company's future operating results and financial condition include, without limitation: (i) our success in attracting new business and retaining existing clients and projects; (ii) the size, duration, and timing of clinical trials we are currently managing may change unexpectedly; (iii) the termination, delay or cancellation of clinical trials we are currently managing could cause revenues to decline unexpectedly; (iv) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (v) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (vi) the ability to maintain profit margins in a competitive marketplace; (vii) our ability to attract and retain qualified personnel; (viii) the sensitivity of our business to general economic conditions; (ix) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices; (x) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties and (xi) our backlog may not be indicative of future results and may not generate the revenues expected. Additional information concerning factors that could cause actual results to materially differ from those in forward-looking statements is contained in Covalent Group's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2004 and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Covalent Group's investor relations department.
Investor Relations Contact: Lawrence Hoffman, CPA, Esq.
CFO, Covalent Group, Inc.
(610) 975-9533
CONTACT US ON-LINE: http://www.covalentgroup.com
