NEWTOWN, Pa.—Taking another stepin the company's game plan to integrate what CEO Mark Weinstein refers to asthe "silos" of information that limit efficiency in the conduct of clinicaltrials, BioClinica Inc. has acquired privately held Tourtellotte Solutions Inc.
The acquisition came two weeksafter BioClinica acquired CardioNow and is another example of how Weinsteinoperates. The company was formed in 1990 when Bio-Imaging Technologies boughtPhoenix Data Systems Inc. The goal then and now is to help update and changehow clinical trials are conducted.
Serving as CEO since 1997,Weinstein points out that BioClinica has "money in the bank and no debt." Inaddition to adding new capabilities such as Tourtellotte's parameter-driven IVRand IWR products, Weinstein emphasizes holding on to intellectual capital—EdTourtellotte, president of Tourtellotte Solutions, will be joining BioClinicaas vice president of product innovation, and he and his team will be part ofBioClinica's eClinical Division.
Weinstein says he also looks forcompanies that will be "near-term accretive."
BioClinica estimates thatTourtellotte will generate approximately $5 million in revenue for the fullyear 2009 on a stand-alone basis. BioClinica currently estimates that for theremaining three and a half months of 2009, Tourtellotte will contributeapproximately $1.2 million in revenue and a small amount of operating incomeand be EPS neutral. This unaudited financial information is based uponpreliminary estimates, subject to the company's further review.
Tourtellotte software is currentlybeing used in more than 150 active clinical trials and more than 300 trialssince its inception. Its tcVisualize product allows biopharmaceutical companiesto simulate and optimize the clinical supply chain. Using tcVisualize, studymanagers can develop a clinical supply plan resulting in a rapid return oninvestment by reducing product waste, trial delays and lost patient enrollmentdue to product stockouts. tcVisualize is currently being used by four of thetop 10 global pharmaceutical companies.
Most recently, Tourtellotteintroduced Trident, a next-generation interactive voice/interactive webresponse system (IXR) that "redefines how interactive response technology canfunction in the biopharmaceutical industry," the company says. It isparameter-driven, built specifically for the Web, and is able to support rapid,flexible customization that supplies greater control over cost and data thantraditional IVR.
"When we looked at strategies torapidly grow and expand the company to meet the demand for our products,joining the BioClinica team was the logical step," says Tourtellotte."BioClinica has a strong global presence in the market, robust productofferings and great client relationships. Their experienced sales andoperations infrastructure will enable the benefits of clinical trial supplyoptimization and the next generation of IXR to reach more new clients, faster.We look forward to being an integral part of BioClinica's continued success."
Weinstein points out that sizematters to Big Pharma and that BioClinica, which now serves all 10 of the 10largest pharmas and 75 percent of the top 50, can leverage Tourtellotte'sproducts and services more effectively than Ed Tourtellotte's company could onits own.
"Tourtellotte Solutions embracesmany of the same tenets that have yielded success for BioClinica's clients overthe past 20 years," he notes, "and we welcome them to our team."
BioClinica is purchasingsubstantially all of the assets of Tourtellotte for $2.1 million in cash atclosing plus additional payments based upon achieving certain milestones. Ifcertain predetermined milestones are achieved, an additional $3.2 million incash and 350,000 shares of BioClinica common stock can be earned.
Excel Partners LLC acted asexclusive financial advisor to BioClinica in this transaction and CovingtonAssociates LLC acted as exclusive financial advisor to Tourtellotte.