Wayne, Pa.-based contract research organization (CRO) Encorium Group said yesterday that it has entered into two non-binding letters of intent to sell the assets of its U.S. business, Encorium Group, and its wholly owned European subsidiary, Encorium Oy.
The company did not release any specific information about the pending deals, other than to say that the potential buyers are a full-service internationally based CRO and a full-service clinical research organization based in the U.S. with operations globally.
The troubled company has been exploring strategic options for the past several months after more than a year of struggles. The company’s revenues dropped significantly in 2008, and two CEOs abruptly left the company within months of each other. Things took a turn for the worse in September after the company terminated plans to acquire two companies that were expected to turn around Encorium. The company was listed as a going concern in its 2008 financial statement.
"Over the last several months we have been actively pursuing opportunities to enhance and maximize stockholder value. Encorium's management and board have determined a sale of our assets was the best strategy to pursue,” said Encorium CEO David Ginsberg in a company statement. “Both purchasers are well-respected organizations with strong management teams and therapeutic and regulatory expertise and we believe that transferring our assets in these two transactions is in the best interest not only for our stockholders, but for our customers and employees as well. These transactions will enable our project teams to remain wholly intact so as to continue to provide excellent service to our customers."