Covance and WuXi PharmaTech to Form a Joint Venture to Provide World-Class Preclinical Service...( PRINCETON N.J. and SHANGHAI China...)

PRINCETON, N.J. and SHANGHAI, China, June 24 /PRNewswire-FirstCall/ -- WuXi PharmaTech (NYSE: WX) and Covance Inc. (NYSE: CVD) today announced that the two companies have entered into a Memorandum of Understanding to create a 50-50 joint venture which will provide world-class preclinical contract research services in China. Operations of the proposed joint venture will be located in a 323,450 square-foot, purpose-built facility in Suzhou, China, which is currently being constructed by WuXi. This state-of-the-art facility, expected to be completed in 2009 and designed to meet the United States Food and Drug Administration and worldwide regulatory standards, will provide GLP toxicology, drug metabolism and bioanalytical chemistry services. In addition to the facility, which will be provided by WuXi, Covance anticipates to make an initial investment of approximately $30 million. Financial and structural details of the joint venture are expected to be disclosed once definitive terms are agreed and the entity is officially formed later this year.

"This joint venture will create a powerful partnership between China's leading provider of discovery and development services with the world's largest public contract research organization," said Joe Herring, Covance chairman and chief executive officer. "Covance and WuXi share a common commitment to quality, people, and building client relationships based on trust and performance. Covance's market-leading and high-quality preclinical operations, combined with WuXi's track rec
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