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ENCO 3.14 Encorium Group, Inc. Announces $3.8 Million Contract For Phase 2 Clinical Trial in Herpes Zoster (Shingles)
Jun 21, 2007 10:22:00 AM
Copyright Business Wire 2007

WAYNE, Pa.--(BUSINESS WIRE)--

Encorium Group, Inc. (Nasdaq: ENCO), a leader in the design, development, and management of complex clinical trials and patient registries for many of the world's leading pharmaceutical and biotechnology companies, today announced the signing of a $3.8 million contract for a Phase 2 clinical trial of a new antiviral agent to treat herpes zoster (shingles). Encorium will provide multiple services including program consulting, project management, site management and monitoring, data management, biostatistical support, and medical writing. Revenue recognition will begin during the current second quarter and continue on a proportional performance basis over the life of the contract as services are performed.

Kenneth M. Borow, M.D., Encorium Group's President and Chief Executive Officer, commented, "We are delighted to have been chosen by this new client to work on its Phase 2b trial involving a new antiviral agent for the treatment of herpes zoster (shingles). The program combines our expertise gained from operationally overseeing the highly successful 38,546 subject Shingles Prevention Trial with the patient recruitment experience obtained recently from clinical trials relating to antiviral treatments for acute influenza. Thus, this new contract represents an excellent blend of our infectious disease therapeutic area expertise and our highly relevant on-the-ground clinical operations capabilities and experience. We look forward to a long and mutually beneficial collaborative relationship with the sponsoring company."

Dr. Borow concluded, "We are now beginning to see the benefits of our expanded global business development efforts. This $3.8 million contract is a concrete example of the value that the biopharmaceutical industry places on our integrated offering of consulting services, operational expertise, proactive planning, and medical education capabilities. We anticipate announcing additional signed contracts over the next several months as well as further elaborating on other initiatives that we are pursuing."

About Herpes Zoster (Shingles)

Herpes zoster is caused by reactivation of the varicella zoster virus (VZV), the same virus that causes chickenpox. This can occur years or even decades after exposure to naturally occurring or vaccine type VZV. A decline in specific cell mediated immune response to VZV as observed in the elderly population and immunosuppressed hosts is regarded as the major precipitant for inducing VZV reactivation. It is estimated that 500,000 to 1 million cases of zoster are diagnosed annually in the U.S. Both genders are equally affected. About 20% of people who have had chicken pox will get zoster at some point during their lifetime. Zoster is characterized as a localized disease that usually involves only one side of the body. The rash that occurs with Zoster is often associated with significant pain. The pain symptoms may last many months after the rash has resolved. Use of antiviral therapy at the time of initial diagnosis is associated with a reduction in pain duration. The overall goals of antiviral therapy are to promote more rapid healing of skin lesions and to lessen the severity and duration of pain associated with the disease.

About Encorium Group, Inc.

Encorium Group, Inc. is a global clinical research organization that is a leader in the design and management of complex clinical trials and Patient Registries for the pharmaceutical, biotechnology and medical device industries. The Company's mission is to provide its clients with high quality, full-service support for their biopharmaceutical and medical device development programs. Encorium offers therapeutic expertise, experienced team management and advanced technologies. The Company has drug and biologics development as well as clinical trial experience across a wide variety of therapeutic areas such as infectious diseases, cardiovascular, vaccines, oncology, endocrinology/metabolism, diabetes, gene therapy, immunology, neurology, gastroenterology, dermatology, hepatology, women's health and respiratory medicine. Encorium believes that its leadership in the design of complex clinical trials, its therapeutic expertise and commitment to excellence, and its application of innovative technologies, offer its clients a means to more quickly and cost effectively move products through the clinical development process. Encorium is headquartered in Wayne, Pennsylvania with its European base of operations in Espoo, Finland. The Company has a geographic footprint that includes over one billion people in North America, Western/Central/Eastern Europe, Scandinavia, and the Baltics.

This press release contains forward-looking statements identified by words such as "estimate," "project," "expect," "intend," "believe," "anticipate" and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Potential risks and uncertainties that could affect the Company's future operating results and financial condition include, without limitation: (i) our success in attracting new business and retaining existing clients and projects; (ii) the size, duration, and timing of clinical trials we are currently managing may change unexpectedly; (iii) the termination, delay or cancellation of clinical trials we are currently managing could cause revenues to decline unexpectedly; (iv) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (v) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (vi) the ability to maintain profit margins in a competitive marketplace; (vii) our ability to attract and retain qualified personnel; (viii) the sensitivity of our business to general economic conditions; (ix) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices; (x) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties; (xi) our backlog may not be indicative of future revenues and may not generate the revenues expected; (xii) our ability to successfully integrate the businesses of Encorium and Remedium Oy which we acquired on November 1, 2006; and (xiii) ability of the combined businesses to operate successfully, generate revenue growth and operating profits. You should not place any undue reliance on these forward looking statements which speak only as of the date of this press release. Additional information concerning factors that might affect our business or stock price which could cause actual results to materially differ from those in forward-looking statements is contained in Encorium Group's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2006 and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Encorium Group's investor relations department or The Equity Group Inc.

Source: Encorium Group, Inc.

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Encorium Group
Inc.
Lawrence R. Hoffman
CPA
Esq.
Chief Financial Officer
610-975-9533
[e-mail]
www.encorium.com
or
Investor Relations Counsel:
The Equity Group Inc.
Adam Prior
212-836-9606
[e-mail]
www.theequitygroup.com