03/26/08
Bio-Imaging Buys Phoenix Data Systems For $24M In Cash, Stock
DOW JONES NEWSWIRES
Bio-Imaging Technologies Inc. (BITI) acquired privately held Phoenix Data Systems Inc., a clinical data services provider, for $24 million, consisting of $7 million in cash and 2.3 million common shares.
As a result of the deal, Bio-Imaging raised its full-year earnings-per-share outlook to a range of 22 cents to 24 cents, on service revenue of $52 million to $55 million.
The Newton, Pa., health-care contract service company had previously expected earnings of 21 cents to 23 cents a share, on service revenue of $42 million to $44 million.
The company said Tuesday the acquisition will expand its clinical trial services to pharmaceutical and biotechnology customers.
Phoenix Data, based in King of Prussia, Pa., had 2007 revenue of $12 million. Bio-Imaging expects the acquisition to add to fiscal 2008 earnings per share.
Shares of Bio-Imaging closed Monday at $6.76, down 15 cents, or 2.2%.
-Tom Rojas; 201-938-5400; AskNewswires@dowjones.com
#####
03/26/08
Bio-Imaging Technologies in $24 Million Deal
MARCH 26, 2008, 6:50 AM
Bio-Imaging Technologies Inc. (BITI) said it bought Phoenix Data Systems, a privately held provider of clinical data services, for $24 million in cash and stock.
Bio-Imaging, a Nasdaq-traded company that serves the pharmaceutical, biotechnology and medical-device industries, said the transaction would add to its earnings in 2008.
#####
10/12/2008
New Demand Driving Big Upside for Bio-Imaging Technologies' CRO Niche
If you like these two sector favorites, Pharma/Biotech and Technology, then you'll love Bio-Imaging Technologies, Inc. (Nasdaq: BITI). Pharmaceutical companies are under increasing pressure to cut costs while continuing to fill pipelines and crank out blockbuster drugs and medical devices in the face of increasing regulatory scrutiny. The number, length and costs of clinical trials is on the rise and the trend is only getting worse. Bad for Big-Pharma, but great for the organizations that help conduct these trials.
Dow Jones and
Barron's supported our emerging trend thesis recently in two separate articles
entitled, "Drug-Research Firms Look Set For More Growth" [DJN] and "The Very
Pictures Of Health" (Barron's). Both articles highlight the pressures causing
tremendous and long-term opportunities for Contract Research Organizations (CROs).
These trends are also driving demand and growth for BITI, who may not be
a turnkey CRO, but a company that plays a critical role in clinical development
areas requiring medical imaging such as oncology, musculoskeletal, central
nervous system, neurovascular and cardiovascular.
BITI is the world's largest independent, dedicated provider of medical image management for clinical trials and the Company's growth and profitability is beginning to escalate. After a big loss in 2005, BITI has reported strong double-digit revenue growth and average triple-digit earnings growth in seven consecutive quarters, and backlog is near record levels outpacing revenue growth over the trailing twelve months. Last week, BITI issued its first guidance for fiscal 2008, predicting +10-19% revenue growth and +23-53% earnings growth, but we think, just like last year, that these forecasts are far too conservative.
Oh...we forgot to mention the Company's CapMed segment that provides Personal Health Record (PHR) applications to consumers, insurers and providers. On October 4, 2007, CapMed was selected as a vendor on Microsoft's new online consumer platform, HealthVault. This segment has yet to produce material revenue, but we believe that is about to change. BITI has nearly $15 million in cash, ZERO debt, clear upward business and stock momentum, and most of all; we believe a significant upside to their current FY08 forecasts and beyond.
#####
04/28/08
Bio-Imaging Expects Synergies with Phoenix Data Acquisition
By Ann Neuer
April 28, 2008 | Bio-Imaging Technologies Inc., a provider of medical image management for clinical trials, has acquired Phoenix Data Systems Inc., a privately held electronic data capture (EDC) company. Phoenix is now a division of Bio-Imaging.
At first glance, this looks to be an unusual pairing as the two outfits occupy different niches in the clinical trials sector. But each company had been looking to move to the next level within the industry by expanding their service offerings.
Mark Weinstein, president and CEO of Bio-Imaging, says that his company has had a tremendous interest in the EDC market, which it estimates as a $1 billion opportunity within five years. “We’ve been wanting to be a player in the EDC space, which we see as closer to the center of the clinical data universe,” says Weinstein. To reach this goal, Bio-Imaging talked to numerous players in the EDC sector and discovered that more than a few were in precarious financial situations or lacked dedication to excellence in customer service.
In Phoenix, Bio-Imaging found a rapidly growing company with a very hands-on management committed to top-notch customer service. “Phoenix has a good, solid EDC system that has been used in over 500 clinical trials. Once we understood what Phoenix was trying to do, we realized we could leverage our core competencies to make more together than we could individually,” Weinstein explained.
Bio-Imaging brings critical mass, financial stability, an international presence in the medical imaging market, and good business know-how to the table. Phoenix brings a strong client base of small to mid-size biopharmaceutical companies; nearly 200 new starts using the company’s EDC solution, PDS Express, scheduled for 2008; and financial strength as the company has been built without taking in venture capital.
William Claypool, M.D., president of Phoenix Data Systems, was interested in the acquisition opportunity because he points out that more studies are using imaging data in the clinical trial process. “About one-third of all development projects are in oncology today and many are using imaging data as regulatory endpoints. For example, being free of cancer is demonstrated by imaging. In other areas such as neurosciences, cardiovascular, and musculoskeletal diseases, proof of concept is occurring in imaging,” Claypool comments.
With expanded use of imaging in clinical trials and adoption rate of EDC growing rapidly, both companies see clear opportunities for entry into each other’s markets. At this time, sales forces will remain separate but will look for synergies. Claypool says, “Because many of our clients are smaller companies, decisions about EDC and imaging may be made by the same people. Our relationships with those clients will help us introduce them to imaging.”
In the short term, data sets generated by Bio-Imaging and Phoenix Data Systems will not be integrated, although in the long term that may change if data from medical images come together earlier in the process, particularly with the advent of adaptive clinical trials. To get started, Bio-Imaging and Phoenix Data will continue to function separately although Bio-Imaging will be handling many back-office management functions.
“We see Phoenix Data as creating our next foundation for growth,” says Weinstein.
#####
10/01/2008
Bio-Imaging names new president of Phoenix Data Systems division
30th September 2008
By Staff Writer
Bio-Imaging Technologies, a healthcare contract organization, has appointed
Peter Benton as its new president of Phoenix Data Systems division, a global
clinical data services provider of electronic data capture.
Mr. Benton will succeed William Claypool, who is leaving Phoenix Data Systems to
start a pharmaceutical development consulting company, Pennmark Associates.
Most recently, Mr. Benton was COO
of a publicly traded eClinical technology services company, where he was
responsible for overall operations including project management, applications
development, quality control, customer support and technology integration.
Mr. Benton holds a BS in mechanical engineering from Northeastern University and
an MBA from the Wharton School, University of Pennsylvania.
Mark Weinstein, president and CEO of Bio-Imaging, said: "We are very pleased to
welcome Peter to our senior management team and believe that Peter Possesses the
domain experience and leadership skills necessary to strategically position the
company in the eClinical market."
#####