LabCorp, now the owner of CRO giant Covance, partnered up with Japan's Sysmex to bring in some new technology it believes will make its subsidiary more competitive in the market for oncology clinical trials.
Sihuan Pharmaceutical said it has successfully enrolled the first patient in the United States for its Phase I clinical trial of Pirotinib developed by Shandong XuanZhu Pharma, a wholly owned subsidiary, working with Covance on preparation and initiation.
Hong Kong-listed Sihuan Pharmaceutical said it has joined hands with U.S.-based Covance to develop a drug pipeline aimed at China and U.S. approvals.
LabCorp closed its $5.7 billion takeover of Covance this week and immediately began talking up the potential for its testing data to turbocharge the CRO's clinical trial business.
One of the world's largest CROs is no longer an independent entity as Covance has folded into testing giant LabCorp, closing a $6 billion deal and altering the industry landscape.
Covance posted a roughly 2% increase in sales last quarter, weeks before merging with LabCorp in a $6 billion deal that management says will help the CRO accelerate its growth.
Drug developers commonly deal with a host of CROs as they work their way from preclinical testing to first-in-human trials, a process designed to maximize the strengths of each contractor. But a piecemeal approach to early-stage development can lead to costly delays, according to Covance, which is pitching an all-encompassing offering it claims can seamlessly shuttle molecules from animal studies to Phase II.
A malfunctioning thermostat led to the deaths of 13 research primates at a Covance facility, according to authorities, and the CRO could be in line for federal punishment.
Covance got some bad advice when it agreed to a roughly $6 billion buyout from LabCorp, according to an investor lawsuit, which alleges that chief dealbroker Goldman Sachs had a conflict of interest all along.
Under pressure from cuts in reimbursements and a general malaise for doctor-ordered diagnostics tests, LabCorp's ($LH) $6 billion cash and stock deal for contract drug development player Covance ($CVD) might be the right diversification prescription to ease a financial headache.