WAYNE, Pa., Nov. 10 /PRNewswire/ -- Covalent Group, Inc. (Nasdaq: CVGR)
today announced that Richard Propper, M.D., a veteran medical researcher and
venture capitalist, and Michael Chermak, an experienced executive in the
healthcare information and supply software industries have purchased
1,000,000 shares of the Company's common stock owned by Bruce LaMont, its
Chairman and Chief Executive Officer. The transaction reduces Mr. LaMont's
direct holdings to 42% of the outstanding common stock of the Company, while
retaining his original voting control of 50.2%.
Mr. LaMont said, "Dr. Propper and Mr. Chermak have agreed to act in
advisory roles to assist the Company as it continues to grow into a major
international clinical research provider. We are extremely fortunate to be
able to attract someone of Dr. Propper's stature and capabilities to Covalent.
He brings with him an extensive network of contacts and relationships in the
medical and financial communities, compiled during 10 years of innovative
international clinical research at Harvard Medical School and 15 years of
successful medical venture capital experience. These skills should make him
an immediate contributor to Covalent's future success."
"Michael Chermak is an exciting addition as well due to his extensive
involvement with healthcare information software applications and his
entrepreneurial experience working with growing healthcare companies. Dr.
Propper and Mr. Chermak have worked together before, the latest being the
founding of medibuy.com."
Dr. Propper received his MD degree from the Stanford University School of
Medicine, and has served as an assistant professor in Pediatrics at Harvard
Medical School, a research fellow in hematology at the Children's Hospital
Medical Center in Boston, and a research fellow in Pediatric Oncology at the
Dana Farber Cancer Center. In 1984, Dr. Propper founded Montgomery Medical
Ventures, a seed stage capital firm that directly managed $135 million in
investments. He served as managing General Partner of that fund until 1993.
Mr. Chermak brings to Covalent nearly 20 years of experience in the areas
of healthcare planning, development and marketing. Mr. Chermak was the
founder and CEO of Healthdemographics, Inc., a leading healthcare information
and decision support systems company that was sold to Caredata (formerly
Medirisk) in 1998.
In 1998, Dr. Propper and Mr. Chermak co-founded medibuy.com, a B2B e-
commerce healthcare supply chain intermediary. Medibuy links buyers and
vendors of medical supplies and equipment worldwide. Medibuy has received
funding from venture capitalists Kleiner, Perkins, Caulfield and Byers,
Sequoia Capital, and Oak Investment Partners. Dr. Propper and Mr. Chermak,
with their expertise and recent successes with medibuy.com, should bring added
value to Covalent as the Company explores its strategy of internet
applications to drug development.
Dr. Propper said, "Mr. Chermak and I are impressed with how Covalent has
positioned itself to become a leader in the field of clinical research. The
Company currently has contracts with a number of top-tier drug and device
manufacturers, and strong strategic alliances throughout the industry. Dr.
Kenneth Borow, the COO and Chief Medical Officer of Covalent, and I worked
together successfully at Harvard Medical School, and I have followed his
career with interest over the ensuing years. Since his latest move to
Covalent three years ago, I have been impressed with his abilities in clinical
research design, operations and business development. I believe that the
experience and contacts that Mr. Chermak and I can bring to Covalent will help
the Company grow into one of the leading international clinical research
The private investment firm Covalent Partners, LLC, formed by Dr. Propper
and Mr. Chermak, has acquired an option through January 15, 2000 to purchase
the balance of shares of common stock held by Mr. LaMont.
Covalent Group, Inc. provides drug development services and health
management solutions to pharmaceutical, biotechnology, and device
manufacturers as well as managed care organizations. To aid its customers,
Covalent has developed several proprietary products utilizing interactive
speech recognition technology that significantly improves the efficiency of
conducting clinical trials, including TeleTrial(R), and Virtual HouseCall(R),
a disease assessment system.
This document contains statements of a forward-looking nature. Actual
results may differ from those projected in, expressed, or implied by this
document. Potential risks and uncertainties that could affect the Company's
future operation results include, without limitation: (i) the Company's
success in attracting new business; (ii) the size, duration, and timing of
clinical trials; and (iii) the termination, delay, or cancellation of clinical
trials. Additional information concerning factors that could cause actual
results to materially differ from those referred to in this document is
contained in Covalent's SEC filings, including its registration statements
under the Securities Act of 1933 and its periodic reports under the Securities
Exchange Act of 1934, as amended, copies of which are available upon request
from Covalent's investor relations department.
SOURCE Covalent Group, Inc.