Massachusetts-based contract research organization (CRO) Averion International has sold its clinical staffing services unit to members of the company’s management. The new owners are Harvey Greenawalt and Philip Clark.
The company will be called IT&E Inc.The unit sold for $2.3 million, which includes some contingencies based on the buyer’s ability to generate certain revenue goals from the unit. Averion is due an upfront cash payment of $455,000, deferred payments totaling $250,000 and unsecured promissory notes of $1.6 million. Averion stated the decision was made so that the company could focus on its core CRO business. Averion’s chief executive officer Phillip Lavin called that segment“a financial burden on our operations.”
For the first half of 2007, staffing services’ net service revenues decreased $3.2 million from the same period in 2006. Averion reported a net loss of $2.6 million for the first six months of 2007.
“Our strategy is to enhance our ability to capitalize on the trend toward increased clinical trial outsourcing that is driving industry growth, while taking measures to reach sustainable profitability,” said Lavin.
The clinical staffing unit became part of Averion when the CRO was acquired by IT&E International last August. To complete the reverse merger, IT&E changed its name to Averion International shortly after.
In August, Averion inked a deal with Brazil-based SMO and research center BIOCANCER. The non-exclusive agreement called for the companies to sub-contract and jointly market in their respective markets.
Averion stated the agreement provided it with an expanded patient population, leading investigative sites and access to the South American trial arena. A
Averion also announced it has signed a deal with Albuquerque, N.M.-based Biomoda, a cancer diagnostic technology company. The agreement calls on Averion to provide clinical services such as protocol design and study management for Biomoda.