China's WuXi buys Apptec for $151M

WuXi PharmaTech, a provider of R&D outsourcing services, has agreed to pay $151 million for Minnesota-based medical research group Apptec. WuXi gains Apptec's biologics capabilities along with U.S. market presence.

Analysts aren't so wild about the move. WuXi's success is due to the fact that scientists in China are paid about $30,000 a year--a fraction of the going rate for U.S. scientists, who can make ten times as much. WuXi provides low cost R&D to pharmaceutical companies looking to cut some cash out of the bottom line. Acquiring a U.S.-based asset--along with its highly-paid scientists--could have quite an impact on that business model.

- see this release from WuXi
- read the Wall Street Journal article

Related Articles:
Trend: Research (and marketing) heads to Asia. Report
CRO market hits $14B. Report
Asian CRO gains $22M in second round. Report
China pushes drug development as R&D soars. Report

Suggested Articles

In this week's EuroBiotech Report, Roche's risdiplam clears another phase 3 SMA trial, Merck KGaA spinout raises cash and Korean VCs back PDC*line.

In our EuroBiotech roundup this week, a liver disease biotech raises €11 million, Autolus offers stock and Abivax plans midphase trial. 

Merck KGaA spinout iOnctura has raised a €15 million series A round to support an early-phase solid tumor trial of a PI3Kδ inhibitor.