WuXi PharmaTech (Cayman) Inc. and PRA Health Sciences, Inc. have announced a restructuring of their relationship for the delivery of clinical trial management services in China, Macau and Hong Kong. The two companies formed a joint venture for this purpose in March 2013.
Under the new arrangement, the portion of the joint venture located in mainland China will become a wholly owned subsidiary of WuXi, and the portion of the joint venture located in Hong Kong will become a wholly owned subsidiary of PRA.
In addition, PRA will retain its Strategic Solutions business in China and Hong Kong, which offers custom-built clinical development solutions to sponsors. In connection with this restructuring, PRA and WuXi will form a preferred provider relationship under which WuXi will provide full-service clinical trial services for global clinical trials subcontracted by PRA in China.
“WuXi approached us to explore the restructuring of our relationship to better align with their current objectives in China,” said PRA’s CEO Colin Shannon. “This restructuring allows us to continue our strong relationship with WuXi to support our client needs in China and to leverage the business that we have built together.”
“We appreciate PRA’s strong support for the WuXiPRA joint venture over the past three years,” said Dr. Ge Li, Chairman and CEO of WuXi PharmaTech. “Even with this change in the structure of our relationship, WuXi and PRA will remain strong business partners in China.”