MDS Joins In Drug R&D Venture In China

Canadian contract clinical research organization MDS Health Group Limited has entered into what it says is the People's Republic of China's "first-ever" joint venture in the area of drug research and development services.

The joint venture, which will serve pharmaceutical and biotechnology companies around the world, will be owned by an institute of the Chinese Ministry of Public Health, and Scientific China Inc, a company set up three years ago to negotiate an agreement with China. Through an investment of C$12 million ($8.8 million) in equity and convertible debt, MDS will hold a 35% interest in SCI which will increase upon conversion of a portion of the debt in three years.

The Chinese government, as part of its commitment, is currently constructing a new building in the capital, Beijing, which will house the clinical research facilities, and is providing additional space for a bioanalytical testing laboratory. The government will have a 45% interest in the JV, with the remainder in the hands of SCI and MDS.