Quintiles Transnational of Durham is seeking more deals where it invests directly in promising experimental drugs nearing final stages of development.
Traditionally, Quintiles contracts with drug makers for a fee, but the Durham company's NovaQuest division is quickly becoming a major part of Quintiles' total business, Business Week reported.
Investing directly in new drugs represents more risk if the products stumble, but a much bigger potential payoff when they're successful. It's a strategy shift that comes as Quintiles' main contract-research business is seeing slower growth.
The NovaQuest division will have closed $3 billion of deals by the end of this quarter, executive vice president Ron Wooten told the magazine. Quintiles plans to phase out the NovaQuest name and use Quintiles instead.
More drug companies want outside partners to reduce their costs and spread the risk, Wooten said.
Quintiles officially opened its new world headquarters in Durham this year. The company now employs more than 1,700 locally.
Read the full Business Week story here.