Just a week after announcing plans to sell the assets of its U.S. business to a global based contract research organization (CRO), Wayne, Pa.-based Encorium Group has scrapped those original plans and signed a letter of intent with another international CRO.
Encorium has signed a non-binding letter of intent to sell its U.S. operations to Italy-based Pierrel SpA. Under the terms of the agreement, Pierrel has the right to purchase the U.S. line of business for a purchase price equal to a percentage of the company’s U.S. backlog calculated as of the closing or $1.35 million, whichever is greater. Pierrel also will pay Encorium a 10% commission on the value of any new contract executed between the closing date and December 31, 2009.
Encorium also announced last week plans to sell the assets of its European subsidiary to a full-service CRO based in the U.S. The company did not update those plans.