Phase Forward Acquires Green Mountain Logic, An Innovative Provider of Software for Managing Phase I Clinical Trials
WALTHAM, Mass.–(BUSINESS WIRE)–Oct. 30, 2007–Phase Forward (NASDAQ: PFWD), a leading provider of data management solutions for clinical trials and drug safety, today announced that it has acquired privately held Green Mountain Logic (GML) in an all-cash transaction valued at $5.25 million. The company, based in Montpelier, Vt., is an innovative vendor of process automation software for managing Phase I clinical trials. GML, which was founded in 1998, will continue to operate from its Vermont offices, and John Rosenblum, GML’s president, will become a Phase Forward vice president responsible for GML’s products.
GML’s primary product is LabPas CT(TM), which manages clinic workflow and information from the subject recruiting process through data collection and sample management during Phase I clinical trials. The LabPas CT product helps to link subjects with their laboratory samples, matching barcodes on subject wristbands and the appropriate samples to help ensure data integrity. In addition, since the data collection process during Phase I trials is often a tightly scheduled, multi-step process, LabPas CT includes workflow automation capabilities to help sites prepare for a study and to help streamline the clinical and laboratory processes when conducting the study. Phase Forward plans to integrate this technology with its eClinical Suite with the goal of improving the efficiency and effectiveness of Phase I trials as well as speeding time to data lock. Phase Forward’s InForm(TM) Integrated Trial Management (ITM) product is already considered a market-leading product for electronic data capture (EDC), and the addition of the LabPas CT technology further strengthens Phase Forward’s offerings across the development lifecycle.
“Green Mountain Logic’s LabPas CT brings important functionality to the Phase Forward product portfolio, enabling us to offer a broader and more extensive solution for Phase I clinical trials,” said Bob Weiler, president and CEO, Phase Forward. “Phase I trials represent an important growth area for our products. In addition, it is an area of strategic importance, since Phase I trials establish a relationship with customers at the earliest possible stage of the development cycle.”
Phase I clinical trials represent one of the fastest-growing segments of the market. According to figures released by Goldman Sachs in 2006, Phase I research and development spending in the U.S. was $5.2 billion in 2005, rising to $5.8 billion in 2006, and is projected to grow to $8.9 billion in 2010. For the EDC sector, Phase I growth is projected to be particularly robust, with the market in the U.S. alone estimated at $45 million in 2007, growing to $120 million in 2010, according to an April 2007 report from market research firm Health Industry Insights (“U.S. Electronic Data Capture 2006-2011 Spending Forecast and Analysis,” report # HI206351).
The growth of Phase I trials makes the sector an important target for contract research organizations (CROs). GML is already working with several leading CROs and Phase Forward’s relationships with over 50 CROs provide further opportunities for GML to expands its CRO footprint. Phase Forward believes the combination of LabPas CT and Phase Forward’s products will be an attractive offering for this sector.
“We recognize strong synergies between the GML product line and Phase Forward’s comprehensive electronic clinical data solutions,” said John Rosenblum, CEO and president of Green Mountain Logic. “GML’s Phase I customers are seeking better integration between quality Phase I data and established clinical data capture and management systems. By aligning these two product areas, Phase Forward is in a position to proactively address this emerging market trend. We are excited to be joining this market-leading company.”
The acquisition is not expected to have a material impact on the company’s previously issued revenue guidance for 2007, and it is expected to be dilutive by approximately $0.01 to both GAAP and non-GAAP earnings per share. Non-GAAP results exclude stock compensation expense and amortization of intangibles associated with the Lincoln Technologies and GML acquisitions. Phase Forward expects the acquisition to add between $1 million and $2 million to revenues in fiscal 2008 and to be dilutive by between $0.02 to $0.03 to GAAP earnings per share and dilutive by between $0.01 to $0.02 to non-GAAP earnings per share.
Green Mountain Logic’s Products
GML’s LabPas CT product helps to reduce errors throughout trials with barcode scanning of subjects, treatments and laboratory samples. The system includes features to facilitate real-time data capture of vital signs, adverse events, clinical test results and other clinical events. LabPas CT supports compliance with FDA 21 CFR Part 11 with electronic signature capabilities and audit controls throughout the system.
In addition to LabPas CT, GML offers LabPas EM, an environmental monitoring product designed to support precise reporting of subject sample storage conditions. GML’s portfolio also includes LabPas LIMS, a workflow module that automates sample processes for life science laboratories. The LabPas products are based on an advanced and highly flexible software platform that allows Phase Forward to further explore other segments of the market.
About Phase Forward
Phase Forward is a leading provider of integrated data management solutions for clinical trials and drug safety. The company offers proven solutions for electronic data capture (InForm(TM)), clinical data management (Clintrial(TM)), clinical trials signal detection (CTSD(TM)), strategic pharmacovigilance (WebVDME(TM) and Signal Management), adverse event reporting (Clintrace(TM)) and applied data standards (WebSDM(TM)). In addition, the company provides services in the areas of application implementation, hosting and validation, data integration, business process optimization, safety data management and industry standards. Phase Forward’s products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 250 organizations and regulatory agencies worldwide including: AstraZeneca, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, the U.S. Food and Drug Administration, GlaxoSmithKline, Harvard Clinical Research Institute, Merck Serono, Novartis, Novo Nordisk, PAREXEL International, Procter & Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute, Servier, Tibotec and the U.K. Medicines and Healthcare Products Regulatory Agency. Additional information about Phase Forward is available at www.phaseforward.com .
