Merger
Warsaw, 21st January 2008
KCR: acquisition in the sector
KCR (former Kiecana Clinical Research), a leader of the clinical research market in Central Europe, has signed a contract with DUX Consuling a.s., the largest Czech company handling this type of research in the Czech Republic and Slovakia. This undertaking will make KCR a major company specialising in clinical research on the CRO market in Central and Eastern Europe.
The merger of the two companies is aimed at building a strong capital group within the CEE area. The acquisition carried out in the Czech Republic and Slovakia will also contribute to broadening the range of clients served to-date by KCR and winning new pharmaceutical companies which require a wider scale of research.
“The purchase of 100% of shares in a company operating in the Czech Republic and Slovakia is the first step in implementation of our strategy. Our intention is to build, as soon as it is possible, a home-based capital group which will carry out clinical research in the Central and Eastern European countries” – Adam Kruszewski, President of the Management Board of KCR S.A. said.
The value of transaction was not disclosed. The funds for the acquisition will come from own funds and banks loans of KCR.
DUX Consulting a.s. is the largest CRO player on the Czech market, with 100% of shares in Slovakia-based DUX s.r.o. company. Since the beginning of its operation in 1995, DUX has carried out almost 150 clinical researches in the Czech Republic and Slovakia. In 2007 the company gained revenues amounting to PLN 10 m (estimates), generating margins comparable with those of KCR.
“Our presence in 6 countries of such an attractive market as CEE makes us a suitable partner for companies which carry out research in the region. The merger also provides better development opportunities for our employees” – Igor Minarik, Vice-President of KCR after the merger said.
In H1 2007 revenues from sales gained by KCR amounted to PLN 10.4 m (which is up by 26% against H1 FY06), generating EBIT of PLN 1.1 m (+389%) and net profit of PLN 0.9 m (+536%).
* * *
KCR is the largest R&D company with home capital which carries out clinical research in Central Europe. The company's clients include global pharmaceutical concerns which outsource clinical research to contract research organizations.
The company has branches in Ukraine and Baltic countries. Moreover, it coordinates research in the entire Central Europe, Russia and Western Europe. Owing to its expertise, and good work organisation KCR can successfully compete with global companies.
Over the 10 years of its operation, KCR has carried out 80 clinical researches, cooperating with over 7,200 medical centres.
KCR specialises in phases II - IV of research – preliminary trials with a several dozen patients, multi-centre international trials with thousands of patients, post-marketing surveillance studies, as well as project management.