Galen Associates, Tullis-Dickerson, Delphi Lead Investment Round; New Company is First 'Clicks & Mortar' Solution to Pharmaceutical Industry Needs
GURNEE, IL / OWINGS MILLS, MD (January 10, 2000) AmericasDoctor.com Inc. and Affiliated Research Centers Inc. announced today that the companies have merged, establishing the first Internet healthcare company to significantly impact the pharmaceutical industry's development of new medicines and therapies.
The new organization will offer business-to-business solutions to unmet research and development needs of the pharmaceutical and contract research organization (CRO) industries, as well as solutions to assist research communications, improve new drug introduction and market positioning. The merger creates the first dedicated Internet solution to volunteer recruitment for clinical trials, the pharmaceutical industry's No. 1 obstacle in getting its products to the marketplace.
The AmericasDoctor.com/Affiliated Research Centers merger is an industry landmark, representing the first time a consumer-oriented Internet entity and a clinical trials management organization have combined resources on a large scale to meet a common objective. Pharmaceutical industry estimates show that a delay in bringing a product to market results in the loss of more than $1 million in revenues each day.
The new "clicks and mortar" organization also represents an early entry into the next generation of Internet healthcare companies, whose business strategy from inception integrates a traditional healthcare entity with the strengths of the Internet. The result offers a revolution in e-research and the role of the Internet to position, promote and develop new pharmaceuticals.
Also announced today, Galen Associates Inc., a leading late-stage healthcare venture group based in New York, has led the new company's initial $16 million investment round. Other venture partners include Tullis-Dickerson & Co. Inc., a leading early-to-mid-stage healthcare venture capital fund based in Connecticut, and Delphi Ventures of Menlo Park, Calif. The merged company anticipates raising another $10 to $15 million dollars of capital in the near term.
AmericasDoctor.com, recently recognized as the only Editors' Choice in the category of health and medical Webster by PC Magazine, is sponsored by 120 of America's most prestigious medical centers,including The Cleveland Clinic Foundation, The University of Chicago Hospitals, Vanderbilt Medical Center, Henry Ford Health System and others. Affiliated Research Centers is the leading manager of U.S. clinical research sites, with more than 140 locations and approximately 500 active clinical trials under management.
The merged companies' combined strategic assets a popular consumer Web site, growing clinical trials business, and extensive relationships with drug companies, contract research organizations, major hospitals and physician investigators are the most comprehensive on the Internet now for helping the growing pharmaceutical industry solve its biggest and most costly challenge: volunteer recruitment.
"By enabling pharmaceutical companies to bring new products to market more quickly, we solve a crucial industry problem," said Scott M. Rifkin, M.D., founder and CEO of AmericasDoctor.com. "We also have the opportunity to help millions of people lead healthier lives by expediting the entire clinical trials process, which brings new pharmaceuticals to the market faster."
Steven M. Rauscher, CEO of Affiliated Research Centers, said, "The pharmaceutical industry spent more than $22 billion globally last year on clinical trials. This merger is an extremely important move in enhancing patient recruitment, the leading cause of clinical trial delays."
The combined companies will be called AmericasDoctor.com and have corporate offices in Gurnee, Ill., and Owings Mills, Md. Dr. Rifkin, founder of AmericasDoctor.com, will be Chairman; Rauscher, of Affiliated Research Centers, will be CEO of the new company; and David Adamoli of Affiliated Research Centers will be CFO.
About Affiliated Research Centers
Affiliated Research Centers was founded in 1994 to provide patient recruitment and investigative site services to pharmaceutical companies and contract research organizations. Today, Affiliated Research Centers is one of the largest and most successful organizations in its industry. A leading provider of study-wide patient recruitment services using traditional print, TV and radio media, the company also manages Phase II-IV clinical studies at more than 140 community based research sites in the United States and Canada. Affiliated Research Centers is now managing clinical trials in multiple specialties, including urology, pulmonology, endocrinology, rheumatology, cardiology, gastroenterology, neurology, infectious disease and women's health.
About AmericasDoctor.com
AmericasDoctor.com began operating in September 1998 as an anchor tenant on the America Online Health Channel (keyword: AmDoc) and launched its own site in March 1999 and joined other sites such as drkoop.com (Nasdaq: KOOP), Healtheon (Nasdaq: HLTH), InteliHealth, WebMD, HealthCentral (Nasdaq: HCEN), and OnHealth (Nasdaq: ONHN). It is the only medical/health information Internet destination to offer Ask-the-Doc private, real-time, one-on-one chats with primary care doctors and other health specialists 24 hours a day, seven days a week at no cost to the consumer. In addition to this proprietary chat and a clinical trials division, AmericasDoctor.com also offers consumers a variety of interactive healthcare content such as lectures and live programming; a medical library; health and medical news and publications; and health and condition-specific communities. AmericasDoctor.com has been named by McCall's magazine (November 1999) as one of the 25 Top Web Sites for Women and by PC Magazine (Jan. 4, 2000) as an Editors' Choice winner in the category of health and medical Web sites.
Websites:
www.AmericasDoctor.com
www.arc-centers.com