PRA International to acquire Pharma Bio-Research for €85 million

By Elaine Rigoli

Tampa, Fla., June 19 - PRA International said Monday it will acquire Pharma Bio-Research for about €85 million, funded with a mix of cash, assumed debt and PRA International equity in the form of restricted stock representing about 15% of the purchase price.

Prior to entering into the agreement, PRA received a waiver to a covenant in its existing senior revolving credit facility to permit the Pharma Bio-Research acquisition.

Upon closing the transaction, expected in the third quarter, PRA will issue about 700,000 shares of restricted common stock of PRA at a price per share of $22.552, representing the average daily closing price on the Nasdaq for the five consecutive trading days prior to June 16.

The sellers have agreed that the restricted shares of PRA to be issued upon the closing of the acquisition will be subject to lock-up restrictions under which the sellers agree to refrain from transferring, hedging or otherwise disposing of the shares for a period of one year after the closing of the acquisition.

PRA said its existing phase 1 operations in Lenexa, Kan., will be combined with Pharma Bio-Research's platform to provide early development phase services in both the United States and Europe.

Establishing integrated phase 1/ 2a services in both the United States and in Europe is an important strategic move to support PRA's biotech and pharmaceutical clients, officials said.

Pharma Bio-Research's trailing 12-month unaudited revenue as of March 31 totaled €40.8 million.

Nearly one-third of its revenue comes from large pharmaceutical companies, 21% from biotech and 46% from mid-sized firms, according to a news release.

Since 1984, the company has completed more than 1,200 clinical studies and 2,000 bioanalytical studies with a focus on complex research, the release said.

Pharma Bio-Research is an early phase clinical development company based in Zuidlaren, The Netherlands.

PRA International is a clinical research organization located in Reston, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.