The investment – specifics of which were not disclosed – grants the Mercury the option of increasing its stake in Novotech to 50 per cent.
Mercury founder Clark Perkins told the Wall Street Journal “there’s a strong trend of major pharmaceutical companies outsourcing, which has led to underlying annual compound growth in the market of between 5% and 10%,” adding that “Nanotech is growing much faster than this.”
Novotech – which describes itself as Australia’s largest independent CRO – was founded in Sydney in 1996 and is focused on running clinical trials in Australia, China, India, Taiwan and South Korea.
CEO Ale Sarafian said the firm “is focused on the fast-growing Asia region. We are already active in 10 countries in the region on behalf of our biotechnology and pharmaceutical clients.
He added that: “This investment will further accelerate our expansion plans.”
Trials down under
The deal comes just a few months after the publication of a report calling for revision to Australia’s clinical trial regulations.
The landmark report set out 21 recommendations designed to improve Australia’s healthcare system, including measures designed to encourage the growth of the country’s clinical trials sector.
Ideas range from an online approval system for studies and the establishment of eight to ten regional ethics committees to the implementation of a national clinical trials liability insurance scheme and the creation of a Government office to oversee such reforms.