PRA and newly private WuXi call time on China JV

WuXi PharmaTech and PRA Health Sciences have ended a three year clinical trial management partnership in China.

In December 2013, the two contract research organisations (CROs) unveiled plans for a Phase I to IV joint venture (JV) in China, Macau and Hong Kong.

The plan was that WuXi would provide expertise in local regulations and lab capacity, while PRA brought its global reach and IT clout.

But this week the firms called time on the partnership, announcing a restructuring plan which will see the mainland China portion of the JV become a wholly owned subsidiary of WuXi.

PRA will take control of the Hong Kong business.

“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.”

Wuxi Private

The break-up should not come as much of a surprise, coming a day after Wuxi went private.

Last month PRA CFO Linda Baddour said the JV was "not performing as I had planned" during a conference call last month.

She also said the partnership was being reassessed in light of WuXi’s plan to go private which was announcedin May.

Wuxi became a private company last night, two weeks after shareholders agreed the $3.3bn (€3bn) plan put forward by new owners New WuXi Life Science Limited and subsidiary WuXi Merger Limited.

The owners include group affiliates of, or funds managed or advised by Ally Bridge Group, shareholder Hillhouse Fund II, as well as Ge Li, chairman and CEO of WuXi and several other executives.