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Clinical Data Announces Reorganization to Emphasize Core Pharmacogenomics Business

Posted on: Friday, 20 January 2006, 09:00 CST

Clinical Data, Inc. (NASDAQ: CLDA), a worldwide leader in commercializing pharmacogenomics services and products to guide drug utilization, announced today that it is reorganizing into two operating divisions to be known as Clinical Data Molecular and Vital Diagnostics. The Clinical Data Molecular division will consolidate the operations of Genaissance Pharmaceuticals, Inc., Lark Technologies, Inc. and Icoria, Inc., all of which were acquired by the Company during 2005. The Vital Diagnostics division will consolidate the operations of Clinical Data Sales and Service, Inc., Vital Scientific NV, Vital Diagnostics Pty. Ltd., and Electa Lab s.r.l., the Company's previously owned subsidiaries in the small volume clinical diagnostics market.

Clinical Data Molecular is among the largest independent providers of pharmacogenomics and metabolomics services in the United States and is at the forefront of commercializing genetic tests to guide drug utilization. The business units that now comprise Clinical Data Molecular generated approximately $33 million in revenue, on a pro forma combined basis, in the twelve months ending September 30, 2005, excluding revenue related to Icoria's agricultural genomic services, which will be discontinued upon completion of all outstanding contracts.

Vital Diagnostics has a leading market share for instruments and reagents sold into moderately complex physician's office laboratories within the United States and it has customers in approximately 100 countries around the globe. For the twelve months ended September 30, 2005, the business units that comprise Vital Diagnostics generated approximately $53 million in revenue.

"As a result of this reorganization of our subsidiaries, we are streamlining Clinical Data's corporate structure, increasing accountability, and strengthening our relationships with our customers," said Dr. Israel M. Stein, CEO and President of Clinical Data. "These changes will also allow Clinical Data's senior management team to devote their efforts to furthering the Company's advancement as the leader in utilizing pharmacogenomics and metabolomics to guide drug utilization. Our emphasis will be to expand our menu of molecular services available to physicians, payors, pharmaceutical and biotechnology companies, and academic research organizations."

Randal J. Kirk, the Company's Chairman, said, "This transformation creates a stronger, more cohesive and more customer responsive organization in both pharmacogenomics and in our legacy small-volume clinical diagnostics business. Our strategic focus is to advance a pipeline of proprietary tests and services that will inform drug utilization to reduce health care costs and improve outcomes. We are excited about the lead opportunities in our pipeline: Vilazodone, a novel compound for the treatment of depression, being developed in combination with a genetic screening test that identifies those patients most likely to derive significant benefit from the drug; CARING (Clozapine and Agranulocytosis Relationships Induced by Genetic variants), which we believe can significantly improve outcomes in the treatment of schizophrenia; STRENGTH, a study designed to identify biomarkers to increase positive outcomes for the statin class of drugs, which doctors use to treat patients with high cholesterol and who are, therefore, at risk of cardiovascular disease; and FAMILION(TM), a genetic test for inherited cardiac channelopathies which can result in sudden death in young adults. All of these programs leverage the robust service platforms that we have acquired recently from Genaissance and Icoria."

About Clinical Data, Inc.

Clinical Data, Inc. is a worldwide leader in providing molecular services and clinical diagnostics to improve patient care. The Company's pharmacogenomics and molecular services are marketed to the pharmaceutical, biotech, clinical, academic, government and agricultural marketplaces. The Company is utilizing pharmacogenomics to develop molecular diagnostics and more efficacious therapeutics by finding genetic markers to guide drug development and utilization. Its diagnostic and instrumentation business has a market focus on the physician's office, hospital and small-to-medium sized laboratory segments.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains certain forward-looking information and statements that are intended to be covered by the safe harbor for forward looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding plans, objectives and expectations with respect to future operations, products, services, and scientific outcomes. Such statements are subject to certain risks and uncertainties, the effect of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed and identified by Clinical Data in its public filings with the U.S. Securities and Exchange Commission; the effect on the Company's operations and results of significant acquisitions or divestitures made by major competitors; and the Company's ability to achieve expected synergies and operating efficiencies in all of its acquisitions, and to successfully integrate its operations. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Clinical Data does not undertake any obligation to republish revised forward looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures in Clinical Data's SEC reports including but not limited to its Annual Report on Form 10-KSB for the fiscal year ended March 31, 2005, and fiscal 2005 and 2006 quarterly reports on Forms 10-QSB and 10-Q.

Source: Business Wire

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