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
