Friday, December 19, 2008
Troubled contract research organization (CRO) PharmaNet Development Group announced Thursday that it is working with a financial advisor from USB Investment Bank to explore strategic alternatives, including the potential sale of the company.
This move follows a year of struggles for the Princeton, N.J.-based CRO. Since the start of 2008, PharmaNet’s share price has plunged 97% from $39.19 in January to $1.01 in early morning trading Friday, and, in September, PharmaNet cut its full-year revenue forecast more than $30 million.
“The board of directors and management believe that pursuing strategic alternatives will maximize shareholder value,” said PharmaNet president and CEO Jeffrey McMullen in a company statement.
The CRO has received a several non-binding letters of interest regarding the sale of the company from non-competitors, according to the company release, but the company will not comment further on the process until a definitive strategic decision or agreement is made.