Phase Forward Acquires Maaguzi LLC

Waltham, Mass.

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July 27, 2009

– Phase Forward, a provider of data management solutions for clinical trials and drug safety, today announced it has acquired privately held Maaguzi LLC, a provider of Web-based, electronic patient reported outcomes (ePRO) and late phase solutions, for $11 million in cash. Maaguzi has operations in Indianapolis, Ind. and Morrisville, N.C.

The acquisition of Maaguzi extends Phase Forward’s integrated clinical research suite (ICRS) and marks the company’s entry into the increasingly important ePRO and observational studies markets.   

Clinical studies are progressively incorporating data reported directly by patients, and electronic methods of collecting patient input offer superior quality and help to ensure higher levels of regulatory compliance than traditional paper diary methods. While this market was initially addressed with PDA-based solutions, Maaguzi’s technology is a part of the next generation of ePRO solutions that leverage Web-based interfaces. There is also a growing focus on late phase, observational studies and registries that combine investigator-collected and patient-reported data. Maaguzi’s Outcome Logix product unifies both investigator-collected and patient-reported data into a single, flexible Web-based system supported on all common browsers.

“The acquisition of Maaguzi is another step in our strategy of providing customers with an end-to-end, integrated clinical research suite for efficiently managing all of their trials,” said Bob Weiler, chairman and CEO, Phase Forward. “Our customers tell us that improving the involvement of patients and other parties in the clinical research and post-marketing areas is of critical importance, and Maaguzi’s technology leadership in this area will help us meet that need. We welcome Maaguzi to the Phase Forward team.”

“Phase Forward and Maaguzi share a commitment to the use of innovative technology for optimizing the clinical trial process,” said Scott Dixon, COO, Maaguzi, who is joining Phase Forward as vice president of its newly formed Outcome Logix Group. Dixon added, “We believe that Phase Forward’s global presence, financial strength and brand awareness will prove valuable assets in providing customers with a comprehensive solution for integrating Web-based, patient-reported outcome data into their clinical trials.”

Additional details and the projected financial impact of the Maaguzi transaction on Phase Forward’s future operating results will be provided in the company’s second quarter financial results.

About Phase Forward

Phase Forward is a provider of integrated data management solutions for clinical trials and drug safety. Phase Forward’s products and services have been utilized in over 10,000 clinical trials involving more than 1,000,000 clinical trial study participants at over 290 organizations and regulatory agencies worldwide including: AstraZeneca, Boston Scientific, Dana-Farber Cancer Institute, Eli Lilly, the U.S. Food and Drug Administration, GlaxoSmithKline, Harvard Clinical Research Institute, Merck Serono, Novartis, Novo Nordisk, PAREXEL International, Procter & Gamble, Quintiles, sanofi-aventis, Schering-Plough Research Institute, Servier, Tibotec and the U.K. Medicines and Healthcare Products Regulatory Agency. Additional information about Phase Forward is available at

www.phaseforward.com

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