Covance sells ECG business

   West Windsor-based Covance Inc. (NYSE: CVD), a drug development services company, announced that it has agreed to sell its centralized electrocardiogram (ECG) business to eResearchTechnology (eRT) and enter into a ten year marketing agreement to offer its clients cardiac safety services through eRT’s centralized ECG platform.
   ”Covance remains fully committed to providing our clients with integrated drug development solutions, including critical cardiac safety data in clinical projects,” stated Joe Herring, chairman and chief executive officer of Covance, in a release. “Under the new marketing arrangement, we believe our clients will benefit from eRT’s industry-leading centralized ECG services. The transaction also allows Covance’s management team to focus more attention and investments on growing our service offerings in the larger markets we serve,” he stated.
   In exchange for its centralized ECG business, which accounted for less than two percent of Covance’s annual net revenues, Covance disclosed that it has received an upfront cash payment from eRT of approximately $35 million with the opportunity to receive up to an additional $14 million in contingent consideration relating to transferred backlogs as well as from revenues generated from new contracts secured under the long-term marketing arrangement. In addition, Covance expects to receive certain referral fees over the term of the marketing agreement.