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Transcending clinical trial hurdles
NEWTOWN, Pa.—BioClinica, a Pennsylvania-based clinical trial management services company, has signed an agreement to purchase TranSenda International, a Bellevue, Wash.-based developer of clinical trial management software.
The terms of the deal call for TranSenda shareholders to receive a total of 577,960 shares of BioClinica stock as compensation for the purchase. For 2010, BioClinica expects TranSenda to contribute approximately $1 million in service revenue and an operating loss of $500,000.
Additional financial details will be provided when BioClinica releases its first quarter 2010 results and full- year 2010 guidance, which will include TranSenda's contribution.
BioClinica will continue to maintain an office in the Seattle area. Key employees were retained and several positions were eliminated as a result of this acquisition. TranSenda President Robert Webber will assume a vice president post with BioClinica.
"The acquisition of TranSenda not only enhances our portfolio of clinical trial technology, it also provides us intellectual property with thought leaders and domain experts in trial planning and management," says Mark Weinstein, CEO of BioClinica. "We welcome Bob Webber and his team to BioClinica."
Weinstein says the TranSenda acquisition represents an important advance in the execution of BioClinica's integrated eClinical solutions strategy.
"TranSenda adds clinical trial management solutions that become an important part of our Microsoft Office-enabled delivery vision," he says. "The acquisition also includes intellectual property via the thought leaders and domain experts in trial planning and management."
TranSenda's suite of Web-based, Clinical Trial Management System (CTMS) solutions and patent-pending integration technologies create efficiencies for trial operations through interoperability with Microsoft Office tools. With this acquisition, BioClinica enhances its ability to serve customers throughout the clinical research process with technologies that include improved efficiencies by reducing study durations and costs through integrated operational management.
"With the incorporation of TranSenda's technology, our customers will benefit from the compatibility and ease-of-use efficiencies that exist across the broader eClinical domain," Weinstein says. "This acquisition is an important step forward as we continue to advance our integrated eClinical solutions model and execute our strategy of bringing best-in-class technology and resources to our customers."
According to Weinstein, BioClinica's products already included a number of specialized clinical data collection tools like EDC, IVR/IWR and medical imaging.
"TranSenda's CTMS connects seamlessly to these applications, whether they are BioClinica's or not, and leverages the operational metadata to help sponsors manage their trials better," he notes. "Unifying the data in this way provides a real-time window on the status of the vital metrics managers need to see. As a Microsoft Office-Smart tool, collaboration is enhanced by the ability to see, share and manipulate this information through familiar Microsoft Office tools and through SharePoint. These tools also extend the ability of sponsors to more easily manage their workflows around this operational information."
Webber says the TranSenda staff is pleased with the deal and exited to join BioClinica.
"It will provide us the ability to expand our market reach and delivery to the global marketplace and fulfill the demand for our technologies," says Webber. "We expect BioClinica's expertise, scope of quality customer relationships and their overall global presence will be catalysts to the growth of our technologies and market reach."
As Michael Naimoli, director of life sciences industry solutions at Microsoft Corp., points out, information workers in the life sciences industry are often challenged with working across many different systems throughout the clinical trial process.
"TranSenda has helped pharmaceutical companies address these problems, providing solutions that allow professionals to work within the familiar Microsoft Office environment," he says. "We're pleased that BioClinica customers will also benefit from these tools and continue to simplify the workflow and clinical trials information management process."
The TranSenda acquisition is part of an overall growth strategy, according to Weinstein.
"Yes, there is a lot in the pipeline, but nothing has been publicly reported, so unfortunately I can't share details with you," he notes. "We see tremendous opportunities for both organic growth and acquisitions. Using processes and systems that are really electronic versions of paper-based data collection, most pharmaceutical companies continue to operate in a siloed fashion. In other words, there is not enough communication and collaboration between systems and departments. Siloed solutions end up being very expensive in terms of time, money and quality because at some point, all of the data in these systems have to be reconciled so the information can be analyzed and submitted to the regulatory authorities."
Weinstein also notes that BioClinica is seeing a lot of interest from companies who are interested in more of an eClinical ecosystem, added services, and integrated solutions.
"We continue to analyze those needs and will add new capabilities in the most effective manner we can find, including acquisitions where they make sense," he says.
Weinstein also notes that TranSenda's technology and approach had already attracted the attention of many prospects that were not satisfied with their current solutions.
"After just a few weeks, we already have meetings set up with a number of top pharma companies to talk about potential work," he says. "They believe as we do, that selecting this technology became a much safer choice as part BioClinica. BioClinica expects to rapidly make significant inroads in this market space."