PharmaNet Development Group Updates Strategic Direction and Terminates Exchange Offer
December 18 2008 - 5:05PM
Business Wire
PharmaNet Development Group, Inc. (the �Company�) (NASDAQ: PDGI),
announced today that it is working with its financial advisor to
pursue strategic alternatives, including the potential sale of the
Company and the exploration of alternatives to retire the Company�s
convertible notes. �The Board of Directors and management believe
that pursuing strategic alternatives will maximize shareholder
value,� commented Jeffrey P. McMullen, president and chief
executive officer. �I strongly believe this approach will provide a
more positive outcome for our clients and employees.� In connection
with this process, the Company recently received several
confidential, non-binding written expressions of interest from a
number of parties, none of whom are direct competitors. The Company
does not intend to comment further on the strategic alternative
process unless or until a definitive agreement has been reached or
the Company changes its strategic direction. UBS Investment Bank is
working as the Company�s financial advisor. The Company has decided
to allow its exchange offer for its outstanding convertible notes,
which was previously announced on November 20, 2008, to terminate
at its expiration time and date of 11:59 PM on December 18, 2008.
Subsequent to the commencement of the exchange offer, certain
holders of the convertible notes who had indicated to the Company
their intention to tender their convertible notes in the exchange
offer, instead sold them in the open market. Based on discussions
with the current holders of a majority of the aggregate principal
amount of the convertible notes, the Company understands that they
do not intend to tender their convertible notes in accordance with
the terms of the exchange offer. The Company continues to have
discussions with these current noteholders. About PharmaNet
Development Group, Inc. PharmaNet Development Group, Inc., a global
drug development services company, provides a comprehensive range
of services to the pharmaceutical, biotechnology, generic drug and
medical device industries. The Company offers early and late stage
consulting, Phase I clinical studies and bioanalytical analyses,
and Phase II, III and IV clinical development programs. With
approximately 2,500 employees and 41 facilities throughout the
world, PharmaNet is a recognized leader in outsourced clinical
development. For more information, please visit our website at
www.pharmanet.com. Forward-Looking Statements Certain statements
made in this press release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
(the "Act"). Additionally, words such as "seek," "intend,"
"believe," "plan," "estimate," "expect," "anticipate" and other
similar expressions are forward-looking statements within the
meaning of the Act. Some or all of the results anticipated by these
forward-looking statements may not occur. Factors that could cause
or contribute to such differences include, but are not limited to,
the risk and uncertainty in connection with a strategic alternative
process, not having sufficient funds to pay the principal due upon
conversion of the outstanding notes or to repurchase our
outstanding notes, which we may be required to do beginning in
August 2009, the impact of the current economic environment, the
impact of our indebtedness on our financial condition or results of
operations and the terms of our outstanding indebtedness limiting
our activities, the impact of the investigation by the US
Securities and Exchange Commission, our limited insurance coverage
in connection with the settled securities class action lawsuit,
limited additional coverage for the recently settled derivative
actions and associated future legal fees, the potential liability
related to the recently filed securities class action lawsuit, the
impact of on-going tax audits, our ability to generate new client
contracts and maintain our existing clients� contracts, our
evaluation of our backlog and the potential cancellation of
contracts, the possibility we under-price our contracts or overrun
cost estimates and the effect on our financial results by failure
to receive approval for change orders and by delays in documenting
change orders, our ability to implement our business strategy,
international economic, political and other risks that could
negatively affect our results of operations or financial position,
changes in outsourcing trends and regulatory requirements affecting
the branded pharmaceutical, biotechnology, generic drug and medical
device industries, the reduction of expenditures by branded
pharmaceutical, biotechnology, generic drug or medical device
companies, actions or inspections by regulatory authorities and the
impact on our clients� decisions to not to award future contracts
to us or to cancel existing contracts, the impact of healthcare
reform, the fact that one or a limited number of clients may
account for a large percentage of our revenues, the incurrence of
significant taxes to repatriate funds, the fluctuation of our
operating results from period to period, our assessment of our
goodwill valuation, the impact of foreign currency fluctuations,
tax law changes in Canada or in other foreign jurisdictions,
investigations by governmental authorities regarding our
inter-company transfer pricing policies or changes to their laws in
a manner that could increase our effective tax rate or otherwise
harm our business, our lack of the resources needed to compete
effectively with larger competitors, our ability to continue to
develop new assay methods for our analytical applications, or if
our current assay methods are incorrect, our ability to compete
with other entities offering bioanalytical laboratory services, our
potential liability when conducting clinical trials, our handling
and disposal of medical wastes, failure to comply with applicable
governmental regulations, the loss of services of our key personnel
and our ability to attract qualified staff, the continued
effectiveness and availability of our information technology
infrastructure, losses related to our self-insurance of our
employees� healthcare costs in the US, our ability to attract
suitable investigators and volunteers for our clinical trials, the
material weaknesses relating to our internal controls, and risks
and uncertainties associated with discontinued operations. Further
information can be found in the Company�s risk factors contained in
its registration statement and the included prospectus, its Annual
Report on Form 10-K for the year ended December 31, 2007, and most
recent filings. The Company does not undertake to update the
disclosures made herein, and you are urged to read our filings with
the Securities and Exchange Commission.
Pharmanet Development Grp (MM) (NASDAQ:PDGI)
Historical Stock Chart
From Jul 2024 to Jul 2024
Pharmanet Development Grp (MM) (NASDAQ:PDGI)
Historical Stock Chart
From Jul 2023 to Jul 2024