WuXi to Add Clinical Services in China

WuXi is entering the Chinese clinical trial services sector to help international clients introduce products in the high-growth country, according to Outsourcing-Pharma.

Efforts by WuXi PharmaTech to set up clinical trial capacity in China have just begun but it expects to be operational in the “near future.” In recent years WuXi has consistently invested to add capabilities and views clinical trials as the next “natural extension” to its service offering.

“We get requests from clients who want us to have this capability," Ge Li, CEO of WuXi, said in a call with investors. WuXi will “most likely” enter the sector by investing to develop its capabilities and through acquisitions.

A time frame for the expansion is yet to emerge but David Windley, equity analyst at Jefferies & Company, expects things to move slowly. “Most new capabilities [at WuXi] have been in adjacent areas. Clinical is a little further outside of its core area,” Windley said.

It is also uncertain which stage of development WuXi wants capabilities. Asked if the expansion is focused on phase I or later-stage development, Li declined to answer, citing competitive concerns.

Windley thinks WuXi will start small. “We expect the initial foray to be focused on smaller [clinical pharmacology] capabilities that could leverage the company’s regulatory expertise in China,” Windley said.

Li also touched on the need for China-focused regulatory services. “Clients need high quality clinical and regulatory work in China,” Li said. WuXi plans to target international clients seeking “high-quality and credible” clinical trial work to support marketing applications in China.

(Source: Wuxi PharmaTech)