Exhibit 99
(Logo)
PHC, INC. TO ACQUIRE
PIVOTAL RESEARCH CENTERS, LLC
Acquisition Significantly Expands Company's Pharmaceutical Research Division
-Expected to add $4 Million in Annual Revenues; Be Accretive to `04 EPS-
FOR IMMEDIATE RELEASE
Company Contact: Investor Relations Contact:
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PHC, Inc. Hayden Communications, Inc.
Bruce A. Shear Matthew Hayden
978-536-2777 843-272-4653
Peabody, MA, January 20, 2004 -- PHC, Inc., d.b.a. Pioneer Behavioral Health
(OTC Bulletin Board: PIHC), a leading provider of inpatient and outpatient
behavioral health services, announced today that it has signed a definitive
purchase agreement to acquire Pivotal Research Centers, LLC ("Pivotal"). Pivotal
completed 2003 with approximately $4 million in revenues and net profit margins
in excess of 20 percent.
Based in Phoenix, Arizona., Pivotal performs all phases of clinical research for
Phase I-IV drugs under development through two dedicated research sites,
including one of the largest single psychiatric and neurologic sites in the
country. Pivotal currently has 29 enrolling studies and an additional 24 ongoing
studies with a current fill rate on study contracts of 117.5 percent.
Approximately 75-80 percent of Pivotal's research activity is in central nervous
system (CNS) research and the Company currently has trials in Alzheimer's
disease, ADHD, Diabetes Type II, Generalized Anxiety Disorder, Insomnia, Major
Depressive Disorder, Obesity, Pain, Parkinson's Disease, Shift Work Sleep
Disorder, osteoarthritis and cognitive impairment. Sponsors include names such
as AstraZeneca, Bristol Meyers Squibb, Cephalon, Forest, Glaxo SmithKline,
Lilly, Merck, Mylan, Novartis, Organon, Pfizer, Sepracor and Wyeth.
Bruce A. Shear, chairman and chief executive officer of Pioneer Behavioral
Health, commented, "This acquisition will greatly improve and expand our
Pharmaceutical Research Division, while being accretive to earnings. With more
than ten years of experience, Pivotal is the perfect fit for our Company based
on their solid reputation, strong financial performance, comprehensive
facilities and established relationships with large pharmaceutical companies.
Further, Pivotal's strong management and clinical expertise in CNS and internal
medicine disorder research will expand the number of different pharmaceutical
research trials we can offer to our current customers. We feel strongly that
this is a prudent investment for our Company, particularly as we have made it
our goal to expand the breadth and scope of this division over the coming year."
Pivotal's Medical Director and Founder, Louis Kirby, MD, is a recognized leader
in the clinical trial industry, and maintains strong relationships with many
pharmaceutical companies. Dr. Kirby and Pivotal were profiled in the January
2004 edition of Applied Clinical Trials, a leading publication for the clinical
trial field.
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Mr. Shear continued, "Dr. Kirby is a well respected scientist and driven
researcher who lives to help people. During the past 10 years, Pivotal has
completed more than 300 clinical studies in more than 20 disciplines, working
with more than 65 different sponsors and CRO's, including 75 Alzheimer's trials
and 30 depression trials. The Company's two centers are currently conducting
trials for diabetes, arthritis, Insomnia and Alzheimer's treatments. Dr. Kirby
adds significantly to the Pioneer team, and Pivotal will greatly enhance
Pioneer's existing capabilities."
Mike Colombo, Pivotal's current COO, will assume the CEO position of the
successor organization. Mr. Colombo comes from the aerospace industry having
successfully directed a 2 billion multi-year aircraft contract. He brought his
large company management expertise to the clinical trials industry and is
responsible for introducing many of the management innovations that helped make
Pivotal an industry leader.
Upon closing, PHC, Inc. will deliver $1.5 million in cash and $500,000 in PHC,
Inc. common stock. In addition, PHC, Inc. is obligated to deliver payment on
three performance based notes over the next five years, which are directly tied
to specific profitability thresholds. Management anticipates the acquisition
will be accretive to Pioneer's earnings during fiscal 2004.
About Pioneer Behavioral Health
Pioneer Behavioral Health contracts with national insurance companies, major
transportation and gaming companies to provide behavioral health services.
Pioneer also owns and operates Wellplace.com, a leading provider of Internet and
24/hr telephonic based behavioral health services to consumers and other
segmented populations, and Pioneer Pharmaceutical Research, a growing clinical
trials company. For more information, visit www.phc-inc.com, or
www.haydenir.com.
About Pivotal Research Centers, LLC
Pivotal Research Centers consists of two high performance and professionally
managed investigative sites in the Phoenix metropolitan area with expertise in
performing large, complex clinical research studies including phase I, Ib and
IIa, III and IV. The sites, one in Peoria/Sun City and the other in Mesa/East
Valley, are each staffed with experienced principal investigators and study
staff. With comprehensive facilities, Pivotal's 35 research professionals
deliver top performance to their pharmaceutical and CRO partners. For more
information about Pivotal, visit www.pivotalresearch.com.
This press release may include forward-looking statements that are subject to
risks and uncertainties. Forward-looking statements include information about
possible or assumed future results of the operations or the performance of the
company and its future plans and objectives. Various future events or factors
may cause the actual results to vary materially from those expressed in any
forward-looking statements made in this press release. These factors and risks
are discussed in the company's annual report on Form 10-KSB for the years ended
June 30, 2002 and 2003, copies of which were filed with the Securities and
Exchange Commission, and in our quarterly reports on Form 10-Q filed with the
Securities and Exchange Commission since October 2003.
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