PIHC - - PEABODY, Mass., Apr 15, 2003 (BUSINESS WIRE) --
PHC, Inc., d.b.a. Pioneer Behavioral Health (OTCBB:PIHC), a leading provider of inpatient and outpatient behavioral health services, announced today that its Pioneer Pharmaceutical Research (PPR) division was awarded four new research contracts from major Pharmaceutical Companies during the Company's fiscal third quarter, which ended March 31st.
The research projects, collectively valued at approximately $350,000, are expected to be completed over the next six months and are focused on clinical tests for new drugs, which treat a variety of disorders such as Alzheimer's disease and major depression. With the addition of these new contracts, the Company's PPR division is now conducting nine research studies, with three more expected to start in the next several weeks, and has a current backlog of approximately $553,000. As the backlog grows, there will continue to be variability in this division's quarterly revenue base relating to the specific timing of trials, which are dictated by the Sponsor or supporting Contract Research Organization (CRO). During the third quarter (ended March 31st) there was a sequential quarterly decline in revenue due to fewer contract awards industry wide in the second quarter; nonetheless, PPR management still expects to substantially exceed last year's revenue of $734,000 this fiscal year.
Lawrence Florin, Chief Executive Officer of the PPR division, commented, 'The signing of these new contracts is confirmation that our commitment to grow this area of our business is producing positive results with new and existing clients. We continue to perform well in our Detroit, MI, locations and have begun to ramp up activity in Salt Lake City, UT, with a challenging Alzheimer's project that is being conducted in three nursing homes. During the third quarter, PPR focused on improving its patient recruitment operations, resulting in marked improvement in enrollment across all active research studies. This is particularly important as enrollment of appropriate patients and the corresponding collection of quality data are the key criteria that sponsors and CROs evaluate when awarding new projects to research groups.'
Mr. Florin went on to say, 'In order to continue this positive momentum and growth we will continue to develop solid working relationships with pharmaceutical companies and CROs. To increase awareness of PPR, we also plan on having a presence at several annual industry meetings such as the Association of Clinical Research Professionals (ACRP), which took place last week in Philadelphia, PA, as well as the New Clinical Drug Evaluation Unit (NCDEU) meeting in Boca Raton, FL, in May and the Drug Information Association (DIA) meeting in San Antonio, TX, in June. Further, as PPR continues to execute well on new and ongoing projects, we will continue to be awarded more contracts, thereby further increasing the backlog and monthly revenue, providing more continuity and predictability in our revenue streams.'
In conclusion, Bruce A. Shear, Pioneer's CEO, stated, 'We will accelerate the growth of the PPR division, we also have begun to look for other partnerships, including potential acquisitions, and will formally engage an M&A group to help drive this effort. As PPR's revenue growth continues to increase in the fourth quarter and beyond, decisions regarding an additional sales and business development staff will be evaluated in order to further enhance our sales and marketing activities.'
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