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

Janssen’s BCMA-targeting CAR-T therapy eliminated tumors in 69% of patients with advanced multiple myeloma in a small phase 1 study.

In a study, BMS' CAR-T therapy banished tumors in more than half and shrank tumors in nearly three-quarters of relapsed blood cancer patients.

Novartis unveiled more data showing how its asthma combo QMF149 fared against the standard of care: a combination of the same types of drugs.