CVGR Covalent

WAYNE, Pa., Oct. 6 /PRNewswire-FirstCall/ -- Covalent Group, Inc. (NASDAQ:CVGR) today announced the signing of a $5.3 million clinical trials contract for additional operational services in support of a global Phase 3 hypertension program being conducted with a drug that has a novel mechanism of action. The contract covers the areas of project management, study site management and data management. Revenue will be recognized on a proportional performance basis as services are performed over the life of the contract. Kenneth M. Borow, M.D., Covalent Group's President and Chief Executive Officer, commented, "We are very pleased to have another opportunity to work closely with this exceptionally forward-thinking and innovative Sponsor. The continued development of their drug in patients requiring multiple pharmacologic therapies for hypertension is an important step towards meeting an unmet clinical need. This is particularly relevant since hypertension is a highly prevalent vascular disorder and a major contributor to cardiovascular disease, the leading cause of mortality in the United States. Recent clinical studies have suggested that difficult to treat hypertension is increasingly common and must be aggressively managed using novel pharmacologic approaches." Dr. Borow continued, "This Sponsor's selection of Covalent as the clinical research organization to support the Phase 3 development program of their drug follows a successful Phase 2 trial that Covalent also helped support with consultative and operational services. The continued confidence that the Sponsor has shown in Covalent once again demonstrates the strength of our programmatic and operational capabilities in clinical research design and conduct. Recent examples of other trials in which we have also made important consultative and operational contributions include Pfizer's landmark REVERSAL and CAMELOT-NORMALISE studies as well as Merck's Herpes Zoster (Shingles) Prevention Study. Data from these clinical trials have recently appeared as lead articles in the New England Journal of Medicine (NEJM) and the Journal of the American Medical Association (JAMA). About Covalent Group, Inc. Covalent Group is a clinical research organization that is a leader in the design and management of complex clinical trials and Patient Disease 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 clinical trials. Covalent offers therapeutic expertise, experienced team management and advanced technologies. The Company has clinical trial experience across a wide variety of therapeutic areas such as cardiovascular, endocrinology/metabolism, diabetes, vaccines, biologics, gene therapy, immunology, neurology, oncology, infectious diseases, gastroenterology, dermatology, hepatology, womens' health and respiratory medicine. Covalent believes that its leadership in the design of complex clinical trials, its application of innovative technologies, therapeutic expertise and commitment to quality offer its clients a means to more quickly and cost effectively develop products through the clinical trial process. With its wholly-owned international subsidiary, Covalent Group, Ltd., as well as its Strategic Partners operating in various regions around the world, Covalent is able to meet the global drug development needs of its clients. For more information, please visit http://www.covalentgroup.com/. 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) our 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; and (xi) our backlog may not be indicative of future results and may not generate the revenues expected. Additional information concerning factors that could cause actual results to materially differ from those in forward-looking statements is contained in Covalent Group's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2004 and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Covalent Group's investor relations department. Investor Relations Contact: Lawrence R. Hoffman, CPA, Esq. CFO, Covalent Group, Inc. (610) 975-9533 CONTACT US ON-LINE: http://www.covalentgroup.com/ DATASOURCE: Covalent Group, Inc. CONTACT: Lawrence R. Hoffman, CPA, Esq., CFO, Covalent Group, Inc., +1-610-975-9533 Web site: http://www.covalentgroup.com/

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