Encorium Group, Inc. Announces Realignment of Its Senior Management Team to Meet Its Global Growth Objectives
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Encorium Group, Inc. (Nasdaq: ENCO), in order to more effectively
support its global growth plans, announced that it is realigning the
responsibilities of its senior management team. These changes are
intended to facilitate globalization of Encorium through expansion of
the Company’s worldwide service offerings with
a focus on sustained revenue growth and profitability. Dr. Kenneth M.
Borow is currently President of Encorium Group, Inc. as well as Chief
Executive Officer. In order to allow Dr. Borow to focus more of his time
on the expansion of the Company’s Consultancy
Services business and its Global Business Development initiatives, the
responsibilities of Chief Executive Officer have been transferred as of
today to Dr. Kai Lindevall, presently Encorium’s
President of Operations for Europe and Asia. Dr. Borow will remain
President of the Company as well as assume the new position of Chief
Medical and Strategic Development Officer.
Kenneth M. Borow, M.D., commented, "As we
began to implement our broad-based strategy for global expansion, it
became clear that we needed to diversify the responsibilities of our
senior management team. We spent much time identifying what
contributions to our Company’s future success
could best be made by each member of our Executive staff. Because of my
achievements over the years with strategic development programs for
drugs and biologics as well as my network of biopharmaceutical industry
relationships, we collectively decided that I should focus my time
predominantly on these efforts. I look forward to directing our Global
Business Development growth initiatives which will concentrate on
building new client relationships in emerging as well as established
markets. Overall, our goal is to maximize our clients’
return on investment while creating long term relationships that lead to
greater visibility, enhanced growth, and increased profitability for our
Company. I have great confidence that Dr. Lindevall will do an excellent
job as CEO. He is well suited to help move our Company into additional
therapeutic areas and emerging markets worldwide.”
Kai Lindevall, M.D., Ph.D., stated "I am
excited about assuming the role of CEO for Encorium and look forward to
working with Ken to move the Company forward. CROs are increasingly
assuming a highly integral role in the development process for drugs,
biologics and medical devices. I believe that Encorium is well
positioned to take advantage of these growth opportunities, especially
considering our long track record of providing value-added services to
small, mid-sized and large biopharmaceutical companies. In my position
as CEO I shall oversee the implementation of the strategy that our
entire senior management team anticipates will lead to success in terms
of predictable growth and improved financial results. Expansion into new
therapeutic and geographic areas through both organic growth and
acquisitions will be essential in achieving our strategic targets. My
expertise bringing CRO services into emerging markets will be very
helpful in accomplishing our goals. With Ken now able to focus more of
his time on building our consultancy services and delivering on new
business development opportunities, the team should be well positioned
to achieve our targets for global growth and profitability.”
Dr. Borow, who joined the Company in 1997, has been Chief Executive
Officer for the past seven years. During his tenure as CEO, the Company
had many important successes. These included significant contributions
to the design and conduct of multiple landmark studies in cardiology,
vaccines, infectious disease, oncology, and biologics - studies which
have changed the medical standard-of-care for patients around the world.
In addition, the Company operationally supported numerous new drug
application (NDA) approvals by the FDA and other regulatory agencies
worldwide. In November 2006, Encorium completed the acquisition of
Remedium Oy. This resulted in the Company directly controlling its own
personnel in 16 countries in North America and Europe and having
operational capabilities in more than 30 countries worldwide. Over the
past decade, Dr. Borow and his consultancy group provided expert
solutions on the strategic development of drugs and biologics to large
as well as small biopharmaceutical companies in North America, Europe,
and Japan. In the future, these services will be further expanded.
Dr. Lindevall was the founder and CEO of Remedium Oy and oversaw its
expansion into the emerging markets of Central and Eastern Europe. He
has contributed significantly in the Company’s
recent successes with European and Japanese biopharmaceutical firms. It
will be his responsibility to help the Company achieve its
client-oriented objectives of shorter timelines, high quality data, and
cost containment superimposed upon return to profitability for Encorium
Group, Inc. Moving forward, Dr. Lindevall will also focus on Encorium’s
efforts in the emerging markets of China/Pan-Asia, India, and Latin
America.
Conference Call
Encorium Group will hold a conference call tomorrow morning, February
22, 2008 at 9:00 A.M. EST to discuss the management realignment and
answer investor questions. To participate in the live call by telephone,
please dial (866) 550-5902, or for international callers, please dial
(706) 643-2029. Those interested in listening to the conference call
live via the Internet may do so by clicking the following link: http://audioevent.mshow.com/342017/.
Please go to the Web site 15 minutes prior to the scheduled start to
register, download, and install any necessary audio software.
About Encorium Group, Inc.
Encorium Group, Inc. is a global clinical research organization
specializing in the design and management of complex clinical trials and
Patient Registries for the pharmaceutical, biotechnology and medical
device industries. The Company’s mission is
to provide its clients with high quality, full-service support for their
biopharmaceutical and medical device development programs. Encorium
offers therapeutic expertise, experienced team management and advanced
technologies. The Company has drug and biologics development as well as
clinical trial experience across a wide variety of therapeutic areas
such as infectious diseases, cardiovascular, vaccines, oncology,
diabetes endocrinology/metabolism, gene therapy, immunology, neurology,
gastroenterology, dermatology, hepatology, women’s
health and respiratory medicine. Encorium believes that its expertise in
the design of complex clinical trials, its therapeutic experience and
commitment to excellence, and its application of innovative
technologies, offer its clients a means to more quickly and cost
effectively move products through the clinical development process.
Encorium is headquartered in Wayne, Pennsylvania with its European base
of operations in Espoo, Finland. The Company has a geographic footprint
that includes over one billion people in North America,
Western/Central/Eastern Europe, Scandinavia, and the Baltics.
This press release contains forward-looking statements identified by
words such as "estimate,” "project,” "expect,” "intend,” "believe,” "anticipate” and
similar expressions. Actual results might differ materially from those
projected in, expressed in or implied by the forward-looking statements.
Potential risks and uncertainties that could affect the Company's future
operating results and financial condition include, without limitation:
(i) our success in attracting new business and retaining existing
clients and projects; (ii) the size, duration, and timing of clinical
trials we are currently managing may change unexpectedly; (iii) the
termination, delay or cancellation of clinical trials we are currently
managing could cause revenues and cash-on-hand to decline unexpectedly;
(iv) the timing difference between our receipt of contract milestone or
scheduled payments and our incurring costs to manage these trials; (v)
outsourcing trends in the pharmaceutical, biotechnology and medical
device industries; (vi) the ability to maintain profit margins in a
competitive marketplace; (vii) our ability to attract and retain
qualified personnel; (viii) the sensitivity of our business to general
economic conditions; (ix) other economic, competitive, governmental and
technological factors affecting our operations, markets, products,
services and prices; (x) announced awards received from existing and
potential customers are not definitive until fully negotiated contracts
are executed by the parties;(xi) our backlog may not be indicative of
future revenues and may not generate the revenues expected;(xii) our
ability to successfully integrate the businesses of Encorium and
Remedium Oy which we acquired on November 1, 2006; and (xiii) the
performance of the combined business to operate successfully and
generate growth. You should not place any undue reliance on these
forward looking statements which speak only as of the date of this press
release. Additional information concerning factors that might affect our
business or stock price which could cause actual results to materially
differ from those in forward-looking statements is contained in Encorium
Group's SEC filings, including its Annual Report on Form 10-K for the
year ended December 31, 2006 and other periodic reports under the
Securities Exchange Act of 1934, as amended, copies of which are
available upon request from Encorium Group's investor relations
department or The Equity Group, Inc.