Covance Inc. (CVD), WuXi PharmaTech Co., Ltd. Abandon China Venture Plans
September 29, 2008
PRINCETON, N.J., Sept. 29 /PRNewswire-FirstCall/ -- Covance Inc. announced today that it will no longer pursue a 50-50 joint venture with WuXi Pharmatech to provide preclinical contract research services in China.
"We expect China will become an attractive region for outsourced drug development services over the longer-term. To seize this opportunity, we will pursue our original strategy to build our own world-class preclinical facility in the region and aggressively compete as the global market leader in a business we know very well. We plan to build a comprehensive preclinical capability that matches the high-quality facilities and scientific teams our clients have grown to trust in Europe and North America," said Joe Herring, Covance chairman and chief executive officer. "Once built, the preclinical facility will complement our existing Phase II/III clinical development, central laboratory and our new bioanalytical capability in China and allow us to enjoy the full financial benefits of further leveraging Covance's high- quality brand and drug development experience into Asia."
About Covance
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with annual revenues greater than $1.5 billion, global operations in more than 20 countries, and more than 9,000 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through its website at www.covance.com.
Statements contained in this press release, which are not historical facts, such as statements about the nature, scope and timing and benefits of the planned joint venture as well as the attractiveness of China for delivering outsourced discovery and development services, the growth of the China market and advantages of conducting preclinical research and development in China are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein are based largely on Covance management's expectations and actual results could vary significantly. Success of the planned China preclinical facility, including for delivering outsourced discovery and development services, are subject to other risks and uncertainties including, without limitation, competitive factors, outsourcing trends in the pharmaceutical industry, levels of industry research and development spending, the Covance's ability to build and staff the facility and to market and provide the services in China, and other factors described in Covance's filings with the U.S. Securities and Exchange Commission. Covance does not undertake any duty to update any forward looking statement to conform the statement to actual results or changes in expectations.
CONTACT: Covance: Media, +1-609-419-2060, or Investors, +1-609-452-4807
Web site: http://www.covance.com/