Phase Forward to Acquire Maaguzi for $11M, Profits Down in Q2
Within days of announcing the pending acquisition of Covance’s interactive voice and web response business, eClinical company Phase Forward announced Monday it has purchased technology company Maaguzi for $11 million cash.
With operations in Indianapolis, Ind., and Morrisville, N.C., Maaguzi provides electronic patient reported outcomes (ePRO) services to the pharmaceutical industry. The acquisition of Maaguzi's lead technology, OutcomeLogix, facilitates Phase Forward’s entry into the ePRO and observational studies market. Maaguzi’s chief operating officer Scott Dixon will join Phase Forward as vice president of its newly formed Outcome Logix Group.
“We believe our recent acquisitions are critical steps to ensuring that Phase Forward maintains and extends its current leadership position,” Phase Forward chairman and CEO Bob Weiler told investors on a conference call last night.
The Waltham, Mass.-based company also reported financial results for the second quarter of 2009, reflecting a $1.5-million decrease in net income. GAAP net income for the quarter was $2.2 million, or $0.05 per diluted share, compared with $3.7 million, or $0.08 per diluted share in 2008. Q2 revenues were up 29% to $52.5 million, compared with revenues of $40.9 million in the second quarter of 2008.
Phase Forward's shares were down 9% to $14.27 in afternoon trading Tuesday.