Almost one year after celebrating its purchase of Kendle International, INC Research is facing a setback from the deal. The Raleigh, NC-based CRO announced that it will close the Connecticut laboratory it acquired through the deal sometime this summer, due to the low demand for clinical trials in the state, according to The Hartford Courant.
On the Connecticut Department of Labor website, a notice shows that INC Research will let go of 66 employees from its facility in Old Lyme, CT. The notice also showed that facility, which used to be Kendle's headquarters, is expected to close no later than July 31.
In a prepared statement to FierceCRO, INC noted that its decision to shutter the lab came down to a case of simple geography. It seems that Old Lyme was not serving the CRO's need as a provider of outsourced Phase I-IV clinical development services.
"This action was initiated following a careful review of existing resources, taking into consideration key factors such as geographic location and project requirements," the statement read. "Personnel decisions are always difficult, however this is part of our broader plan to support our strong business outlook based on customer needs. "
When asked by FierceCRO to elaborate on any problems INC faced in Old Lyme, INC spokeswoman Erika Schumacher declined to comment on anything outside of the prepared statement.
INC purchased Kendle for $232 million in cash in May 2011.
- find out more from the Hartford Courant