RPSE Res.Phm.Reg S

    RNS Number : 6147K
  Research Pharmaceutical SRV, Inc
  22 December 2008
   

    ReSearch Pharmaceutical Services, Inc.

    RPS announces the acquisition of two European Clinical Research Organizations expanding RPS' Global Capabilities 

    ReSearch Pharmaceutical Services, Inc. ("RPS" or the "Company"), a leading provider of integrated clinical development outsourcing
solutions to the bio-pharmaceutical industry, is today pleased to announce two separate acquisitions of European based privately-held
corporations, IMEREM Institute for Medical Research Management and Biometrics - Institute f?izinisches Forschungsmanagement und Biometrie -
Ein unabhaengiges Forschungsunternehmen GmbH ("Imerem"), and Infociencia S.L. ("Infociencia"), for a total consideration of EUR4.8 million
($6.6 million) in cash and a total of 2,701,021 shares of RPS common stock, par value $0.0001 each ("Shares").  The cash element of the
consideration is being satisfied from the Company's existing cash resources. 

    The acquisitions of the two corporations, which are both active in the same areas as RPS, will provide the Company with opportunities in
the European market and complement its current operations in the Americas. In addition, the acquisitions will provide RPS with greater scale
to meet the growing needs of its customers in the rapidly expanding market for globally integrated clinical research services. The Company
is expecting each acquisition to be earnings enhancing in 2009.

    Imerem, founded in 1990, is located in N?g, Germany.  Imerem operates throughout Eastern and Western Europe and Scandinavia, providing
clinical research services to the pharmaceutical industry and academic institutions.  For the year ended December 31, 2007 Imerem had
revenues of EUR4.7 million with earnings before tax of EUR2.0 million and as at December 31, 2007 had net assets of EUR3.2 million. The
Company is acquiring Imerem for a consideration of EUR2.3 million ($3.2 million) in cash and 1,296,165 Shares to be issued to Imerem's
shareholder.

    Infociencia founded in 1998, has offices in Barcelona and Madrid Spain and operates throughout Western Europe providing clinical
research services to the pharmaceutical industry, academic and government institutions.  For the year ended December 31, 2007 Infociencia
had revenues of EUR12.7 million with earnings before tax of EUR1.7 million and as at December 31, 2007 had net assets of EUR3.0 million. The
Company is acquiring Infociencia for a consideration of EUR2.5 million ($3.4 million) in cash and 1,404,856 Shares to be issued to
Infociencia's shareholders.

    In relation to each acquisition, the relevant shareholder(s) has entered into a share escrow agreement whereby 50 percent of the Share
consideration for the acquisition shall be held in escrow, with such Shares held in escrow to be released in equal portions on the first,
second and third anniversaries of completion, subject to there being no claims outstanding against each corporation being acquired (as
defined within the respective acquisition agreements). In addition, the shareholders of Imerem and Infociencia have agreed to a 12 month
lock-up on all of the Shares issued as consideration.

    Application has been made for the admission to trading on AIM ("Admission") of 2,107,021 new Shares and dealings in the new Shares are
expected to commence on December 23, 2008. The new Shares shall, upon issuance, rank pari passu with the Company's existing issued Shares.

    Following Admission, the Company will have outstanding 35,248,427 Shares and 1,357,179 Warrants (as defined in the Company's Readmission
Document dated June 5, 2007).

    Additionally, following stockholder approval for the possible cancellation of the Shares from trading on AIM by December 31, 2008 at the
Company's Annual Meeting on August 20, 2008, the Directors have determined that remaining admitted to trading on AIM at present is in the
best interests of the Company's stockholders. The Company therefore announces that its Shares will continue to trade on AIM beyond December
31, 2008.

    Commenting on the acquisitions, Dan Perlman, Chief Executive Officer, said:

    "The acquisitions of Imerem and Infociencia combined with our existing operations in the Americas provide RPS with greater scale to meet
the growing needs of our bio-pharmaceutical customers in the rapidly expanding market for globally integrated clinical research services. 
Imerem and Infociencia bring to RPS a highly experienced team of clinical research professionals who will enhance our global ability to
provide innovative, integrated, cost-effective drug development solutions in support of our customer's product development portfolios."

    About RPS
    RPS was incorporated in Delaware on January 30, 2006, while its subsidiary and operating company, ReSearch Pharmaceutical Services, LLC,
and its predecessors have been in existence since 1994. Headquartered in Ft. Washington, Pennsylvania, with subsidiary offices across Latin
America and Europe, RPS is a next generation CRO and a leading provider of integrated clinical development outsourcing solutions to the
bio-pharmaceutical industry. RPS provides services in connection with the design, initiation and management of clinical trials programs that
are required to obtain regulatory approval to market bio-pharmaceutical products. RPS' innovative business model combines the expertise of a
traditional CRO with the ability to provide flexible outsourcing solutions that are fully integrated within RPS' clients' clinical drug
development infrastructure. This approach was designed to meet the varied needs of small, medium and large bio-pharmaceutical companies.

    For further information please contact:

 ReSearch Pharmaceutical Services, Inc.                       +1 215 540 0700
 Dan Perlman, Chief Executive Officer
 Steven Bell, Chief Financial Officer

 Nominated Adviser and UK Broker:                             +44 20 7012 2100
 Arbuthnot Securities Limited
 James Steel / Richard Tulloch    


    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
    This document contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as "anticipates", "intends", "plans", "seeks", "believes", "estimates", "expects"
and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the
Company's current expectations and assumptions regarding its business, financial condition, the economy and other future conditions. Because
forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the
forward-looking statements. The Company cautions you therefore that you should not rely on any of these forward-looking statements as
statements of historical fact or as guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional,
national or global political, economic, business, competitive, market and regulatory conditions including: our ability to identify
liabilities associated with RPS; our ability to manage pricing and operational risks; our ability to manage foreign operations; changes in
technology; and our ability to acquire or renew contracts. Any forward-looking statement made in this document speaks only as of the date on
which it is made. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not
possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or otherwise, unless otherwise required to do so by law or regulation.


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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