News & Observer | newsobserver.com | Quintiles may snatch rival's target

Published: Jun 14, 2008 12:30 AM
Modified: Jun 14, 2008 03:08 AM

Quintiles may snatch rival's target

 

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Quintiles Transnational is considering outbidding a rival to buy a British software company.

Quintiles, a Durham company that helps drug makers test and sell new medicines, announced Friday that it may make a counterbid for ClinPhone.

The announcement came shortly after Quintiles' competitor, Parexel, agreed to acquire ClinPhone for $182 million in cash. A counterbid would be in cash and would be higher than Parexel's, Quintiles said.

Founded in 1993 by two former pharmaceutical employees, ClinPhone makes software that helps select people for drug tests and collects the data from the tests. ClinPhone says its technology makes clinical trials less expensive and reduces errors.

"The operations of ClinPhone are a strategic fit with Quintiles' clinical research capabilities," Quintiles' statement read.

Quintiles also confirmed in the statement that discussions with ClinPhone's board of directors are ongoing.

The largest contract drug researcher by revenue, Quintiles generated more than $2 billion in revenue last year. The company has been privately held since a $1.75 billion buyout five years ago.

With demand for clinical testing rising, Quintiles has been expanding. A new headquarters is going up at Interstate 40 and Page Road in Durham, and hiring is brisk.

In the next five years, Quintiles plans to add about 5,000 employees to its worldwide work force of 21,000. Headcount at its corporate headquarters is expected to double to 2,000.

British regulators' requirements led Quintiles to reveal its interest in ClinPhone, which is publicly traded on the London stock exchange, Quintiles spokesman Dick Jones said.

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