WuXi PharmaTech and PRA Form Joint Venture to Offer Clinical Research Services for Chinese Market
SHANGHAI and RALEIGH, N.C. -- WuXi PharmaTech, a leading contract research organization with operations in China and the United States, and PRA, a leading global clinical contract research organization, today announced that they have signed a joint venture agreement to offer a broad platform of Phase I-IV clinical trial services in China, Hong Kong and Macau. The joint venture will provide services including clinical trial monitoring, project management, regulatory strategy and submissions, data management, biostatistics, drug safety reporting, and medical monitoring.
The clinical operations of WuXi and PRA in China will combine to operate as an independent CRO and will be jointly owned by their respective parent companies. WuXi will contribute clinical and regulatory experience to the joint venture from its China-based clinical organization. That organization covers all regions of the country and has employees working in 16 Chinese cities, with offices in Shanghai, Beijing and Guangzhou. WuXi will also supply laboratory services to the joint venture through a preferred provider arrangement. PRA offers the venture a wealth of global resources and clinical research expertise, reflected in more than 3,100 studies conducted over the last five years and contributions to 40 approved drugs in several therapeutic areas. PRA will also support the venture with its China-based staff and global technology capabilities, encompassing data capture, trial management and other IT systems. The companies will market the joint venture's services to their respective customers.
"We are delighted to partner with PRA to build the leading clinical-trial services operation in China," said Dr. Ge Li, Chairman and CEO of WuXi PharmaTech. "China's pharmaceutical market today is the third largest in the world and growing very rapidly. Biopharmaceutical companies increasingly need sophisticated clinical-trial management services to gather the highest-quality data in Chinese patients to complete Chinese and international regulatory filings as quickly and successfully as possible. We aim to become the clinical trial service provider of choice in China with the highest quality standards and operational excellence."
"PRA's global experience and technical expertise and WuXi's operational experience and knowledge in China are a perfect fit," said Colin Shannon, President and CEO, PRA. "Our companies also share a culture dedicated to delivering excellent customer service, valuing employees and meeting the highest standards of quality. Clinical trials continue to expand in China, and this joint venture is another step we are taking to meet the needs of our clients by establishing a strong presence there. We look forward to working with WuXi to serve global life science companies conducting studies in China."
About WuXi PharmaTech
As a research-driven and customer-focused company, WuXi PharmaTech provides a broad and integrated portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process. WuXi PharmaTech's services are designed to assist its global partners in shortening the cycle and lowering the cost of drug and medical device R&D. WuXi AppTec is the name for the operating subsidiaries of WuXi PharmaTech. For more information, please visit: http://www.wuxiapptec.com.
PRA is transforming clinical trials through our people, innovation and transparency. PRA provides personalized service customized to the unique requirements of each study. We support our global reach and innovative approach through flexible and reliable service, delivered by skilled employees dedicated to ensuring that sponsors achieve their long-term goals.
We serve our clients across all phases of pharmaceutical and biotech drug development by combining therapeutic and operational expertise with local knowledge. Offering services in 80+ countries and serving sponsors for 30+ years, we have amassed a level of expertise that has enabled us to work on a variety of compounds, ranging from niche treatments and therapies to blockbuster drugs. But at PRA, we are looking to the future, not the past. Our increasingly forward-thinking approach to transforming the clinical trial landscape will continue to make a difference to healthcare patients around the world. To learn more about PRA, please visit www.praintl.com.
Cautionary Note Regarding Forward-Looking Statements for WuXi PharmaTech
Statements in this release contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995, including, among others, the timing of the creation of a joint venture to offer clinical services in China, growth in the pharmaceutical market in China and corresponding demand for drugs and clinical trials, the anticipated benefits of the joint venture to the parties and the ability of the joint venture to accelerate the provision of clinical trial services for the Chinese market.
These forward-looking statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. For example, the joint venture may not receive the required regulatory approvals and the venture may not be formed at all. In addition, WuXi PharmaTech's, including WuXi's and the joint venture's, actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Among other factors, the parties may not realize the anticipated benefits of the joint venture; the joint venture may experience operational difficulties or management distraction; and WuXi's and PRA's interests may not be fully aligned initially or may diverge in the future. Further, the state of the global economy may continue to be uncertain; WuXi may fail to capitalize on the opportunities presented; the pressures being felt by WuXi's customers and pharmaceutical industry consolidation may adversely impact its business and the trends for outsourced and offshored R&D and manufacturing for longer than expected or more severely than expected; WuXi may not enjoy the anticipated benefits of its recent acquisitions or other planned investments and capital expenditures (including investments made through our corporate venture fund) on a timely basis or at all; WuXi may need to modify the nature and level of its investments and capital expenditures; WuXi may not maintain its preferred provider status with its clients and may be unable to successfully expand its capabilities to meet client needs; WuXi may face increased margin pressure as a result of renminbi appreciation, increased labor inflation in China and the company's investments; and WuXi may not repurchase its ADSs as anticipated for market or other reasons. In addition, other factors that could cause WuXi's actual results to differ from what it currently anticipates include failure to generate sufficient future cash flows or to secure any required future financing on acceptable terms or at all; failure to retain key personnel; WuXi's reliance on a limited number of customers to continue to account for a high percentage of its revenues; the risk of payment failure by any of its large customers, which could significantly harm its cash flows and profitability; WuXi's dependence upon the continued service of our senior management and key scientific personnel and WuXi's ability to retain its existing customers or expand its customer base. You should read the financial information contained in this release in conjunction with the consolidated financial statements and related notes thereto included in WuXi's 2011 Annual Report on Form 20-F filed with the Securities and Exchange Commission and available on the Securities and Exchange Commission's website at http://www.sec.gov. For additional information on these and other important factors that could adversely affect WuXi's business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 6 of WuXi's 2011 Annual Report on Form 20-F. WuXi's results of operations for third-quarter 2012 are not necessarily indicative of our operating results for any future periods. All projections in this release are based on limited information currently available to WuXi, which is subject to change. Although these projections and the factors influencing them will likely change, WuXi undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release, except as required by law. Such information speaks only as of the date of this release.