(Source: PRNewswire)
WAYNE, Pa., July 17 /PRNewswire-FirstCall/ -- Encorium Group, Inc. (Nasdaq: ENCO), a full service multinational clinical research organization (CRO) that provides design, development, and management capabilities for clinical trials and patient registries to many of the world's leading pharmaceutical companies, today announced that is has completed the previously announced sale of the Company's U.S. business to Pierrel Research USA, Inc., a wholly-owned subsidiary of Pierrel SpA, an international contract research organization listed on Milano's Stock Exchange. The purchase price was $2.7 million, comprised of $80,000 in cash as well as the assumption of $2.6 million in liabilities.
In connection with the consummation of the sale, Pierrel Research USA has entered into a lease with the landlord of the Company's U.S. headquarters in Wayne, Pennsylvania, pursuant to which the landlord has agreed to release the Company from its remaining lease obligations of approximately $3.4 million for a termination fee of $235,000.
As of the closing of the transaction, Dr. David Ginsberg, Chief Executive Officer of the Company, has joined Pierrel Research USA as its Chief Executive Officer. In addition, Pierrel has extended employment to substantially all of Encorium's U.S. employees. As a result, Pierrel expects that the U.S. operations will continue largely unchanged and that it will be able to seamlessly continue to deliver the services our customers depend on. Encorium has obtained authorizations from its affected customers allowing the Company to transfer the provision of services to Pierrel.
Dr. Kai Lindevall, Chairman of the Board and President of Europe and Asia, commented, "We believe that the sale of our U.S. business to Pierrell, a well respected international contact research organization with a strong management team and therapeutic and regulatory expertise, is in the best interest of our stockholders, employees and customers."
In conjunction with the sale of the U.S. assets, the Company also announced the departure of Linda L. Nardone, Ph.D., Encorium's Chief Operating Officer.
About Encorium Group, Inc.
Encorium Group, Inc. is a global clinical research organization specializing in the design and management of complex clinical trials and Patient 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 biopharmaceutical and medical device development programs. Encorium offers therapeutic expertise, experienced team management and advanced technologies.
