CVGR Covalent

Covalent Group, Inc. (Nasdaq: CVGR) today announced the signing of a $2.1 million contract to conduct a Patient Disease Registry in hospitalized subjects with hyponatremia (i.e., low serum sodium levels). Covalent will provide consultative input into the overall design of the Registry and Project Management as well as operational support that includes study site management, data management, biostatistical services, and medical writing. Covalent will work closely on this Registry with its Strategic Partner, Sudler & Hennessey, a Young and Rubicon Brands company, that will provide communications, medical education, and electronic media support to the program. Revenue recognition, which will begin in this quarter, will be on a proportional performance basis over the life of the contract as services are performed. Kenneth M. Borow, M.D., Covalent Group's President and Chief Executive Officer, commented, "We are delighted to be a member of the team responsible for consultative input, project oversight and operational support of the Hyponatremia Registry. This Registry is an excellent example of the value of our recently announced Strategic Partnership with Sudler & Hennessey in which Covalent's excellence in clinical trial consulting, design, and operations is combined with Sudler & Hennessey's world-class marketing, medical education, and communications expertise to help address real-world patient care issues." About Hyponatremia Hyponatremia is the most common electrolyte disorder seen in the clinical setting. It is associated with a variety of underlying diseases and conditions affecting approximately 10-15% of hospitalized subjects at some time during their hospital stay. Hyponatremia is often characterized as a state of water overload that is out-of-proportion to the amount of sodium contained in the blood. In these cases, interventions that promote renal excretion of water without associated sodium loss are considered appropriate therapy. Hyponatremia is important clinically since: -- acute severe cases can cause substantial morbidity and mortality, -- mild cases can progress to more dangerous levels during management of other medical disorders, -- general mortality appears to be higher in subjects with even asymptomatic hyponatremia, and -- overly rapid correction of chronic hyponatremia can produce severe neurologic problems and death. The currently recommended therapeutic approaches to the treatment of hyponatremia in hospitalized subjects are under extensive review as newer therapeutic options are developed. Goals of the Hyponatremia Registry The Hyponatremia Registry is designed to help meet the need for more thorough evidence-based real-world patient safety and treatment data in hospitalized subjects with low serum sodium levels. It will help create insights into the effectiveness of traditional as well as innovative therapeutic interventions, drug utilization patterns, quality-of-life measurements, and healthcare resource utilization/cost analyses as they relate to hyponatremia in hospitalized subjects. In addition, the Registry will provide multiple communication and medical education opportunities for individuals interested in learning more about the diagnosis and treatment of hyponatremia. The Registry will have ongoing independent oversight performed by acknowledged experts in various therapeutic areas relating to serum electrolyte abnormalities. About Sudler & Hennessey The S&H Group is part of the Young and Rubicam Brands family of companies. It is a global healthcare marketing and communications organization with offices around the world. The network includes two global communications agencies - Sudler & Hennessey, with U.S. headquarters in New York City, and Sentrix Global Health Communications, with U.S. headquarters in Short Hills, New Jersey. S&H has specialized divisions in medical education (IntraMed Educational Group and Precept Medical Communications), market research and strategic planning, branding, publication strategies, sales training (HealthAnswers), and digital solutions (Avenue-e Health Strategies). For more information, please visit www.sudler.com. About Covalent Group, Inc., Covalent Group, Inc. is a clinical research organization (CRO) 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, infectious diseases, gene therapy, immunology, neurology, oncology, gastroenterology, dermatology, hepatology, women's 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 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) 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 Covalent and Remedium and (xiii) the performance of the combined business to operate successfully and generate growth. 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 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 or The Equity Group Inc.