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DATATRAK AND NTT DATA SIGN FIVE-YEAR ENTERPRISE AGREEMENT AND MARKETING ALLIANCE FOR DELIVERY OF ELECTRONIC CLINICAL TRIALS TO THE JAPANESE MARKET

Clinical Trial Agreement

DATATRAK AND NTT DATA SIGN FIVE-YEAR ENTERPRISE AGREEMENT AND MARKETING ALLIANCE FOR
DELIVERY OF ELECTRONIC CLINICAL TRIALS TO THE JAPANESE MARKET | Document Parties: DATATRAK INTERNATIONAL INC | NTT DATA Corporation You are currently viewing:
This Clinical Trial Agreement involves

DATATRAK INTERNATIONAL INC | NTT DATA Corporation

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Title: DATATRAK AND NTT DATA SIGN FIVE-YEAR ENTERPRISE AGREEMENT AND MARKETING ALLIANCE FOR DELIVERY OF ELECTRONIC CLINICAL TRIALS TO THE JAPANESE MARKET
Date: 12/13/2007
Industry: Biotechnology and Drugs     Sector: Healthcare

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Exhibit 99.1
FOR IMMEDIATE RELEASE:
DATATRAK AND NTT DATA SIGN FIVE-YEAR ENTERPRISE AGREEMENT AND MARKETING ALLIANCE FOR
DELIVERY OF ELECTRONIC CLINICAL TRIALS TO THE JAPANESE MARKET
NTT DATA to undergo Enterprise Transfer from DATATRAK in order to provide a full range of services
for clinical trials from Japanese clients
CLEVELAND, Ohio, and TOKYO, Japan, December 13, 2007 ...DATATRAK International, Inc. (Nasdaq: “DATA”), a technology and services company focused on global eClinical solutions for the clinical trials industry, today reported that it has signed an Enterprise Agreement and Marketing Alliance with NTT DATA Corporation enabling NTT DATA to become a value-added-reseller of the DATATRAK eClinical™ product suite to the Japanese clinical trials market. In addition to this Press Release, there is an accompanying video cast describing this relationship in more detail located on DATATRAK’s web site at www.datatrak.net.
This relationship consists of a five-year enterprise subscription license agreement through which NTT DATA will standardize on the DATATRAK unified platform for clinical trial services delivered by their newly-established Life Science Group in the Healthcare Systems Sector. This Group of NTT DATA will immediately undergo Enterprise Transfer and implementation services from DATATRAK’s multidisciplinary team in order to become proficient in independently designing and delivering electronic clinical trials within the Japanese market using DATATRAK eClinical, with the exception of hosting. DATATRAK will continue to provide global hosting capabilities for its product suite from its data center based in Cleveland, Ohio.
The enterprise license and implementation services are initially worth a minimum of approximately $2.4 million to DATATRAK as NTT DATA has committed to a five-year contract encompassing a fixed volume of data items. Under the terms of this Agreement, NTT DATA will pay $2.1 million upfront to DATATRAK within 30 days. The total contract amount of $2.4 million is a minimum value because any services provided by DATATRAK or optional components of the DATATRAK eClinical™ Platform outside of the EDC (electronic data capture) or reporting (Data Genie™) functionalities are contracted separately on an as needed basis.
Until NTT DATA is fully trained on the delivery of services with the eClinical Platform, DATATRAK will provide such services for early initiated clinical trials. When DATATRAK provides full support for eClinical implementations, its revenue composition has been approximately 25% technology (data item) based and 75% has come from associated services. When clients assume more of the service delivery through Enterprise Transfer, the revenue mix is less than the historical 3:1 average.

 


 
Through a pre-structured pricing agreement that goes above the initially contracted volume of data items, NTT DATA has the option to expand under the existing license agreement to higher levels of data items based upon the demands of their Japanese clinical trial sponsors.
This Enterprise Agreement also allows NTT DATA to sublicense the DATATRAK eClinical Platform to clinical trial sponsors and contract research organizations (CROs) located in Japan and subsequently empower those organizations to become independent in the use of this information platform.
As detailed on the Company’s recent quarterly conference calls, the subscription license model is an optional contracting mechanism for the DATATRAK eClinical Platform that is separate and in addition to the traditional trial-by-trial approach. This option offers greater flexibility and leverage to clients performing a larger number of annual clinical trials. The prices and payments in this model relate solely to the technology portion of the budgets and are contractually fixed and guaranteed by DATATRAK and the client, respectively, for a given volume of data transmission. Delays or cancellations of clinical trials have no impact on the contractual commitments for the technology portion of the contract. Clinical trials and data items are fungible; being able to be substituted at any time and from any source in order to consume the available pre-paid volumes. Clients who use more than the contracted volume of data items have the option to either pay retail rates for the overage or they can elect to renew the license agreement for another term.
Since this structure represents a contractually-bound and guaranteed monetary value, all of these technology-associated fees enter the Company’s backlog upon signing and revenue is recognized over the life of the contract. The services’ components will have their backlog and revenue recognized at the time they are contracted for and

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