Contract research organization Cetero Research is closing its Cary headquarters and moving operations to North Dakota following its sale after bankruptcy proceedings.
No local employees will lose their jobs in the move.
On June 20, the Chicago-based Freeport Financial Group, which owned Cetero’s brick-and-mortar properties, finalized its $80 million purchase of the company, which will now be called the PRACS Institute after a legacy company Cetero had purchased in 2006.
Cetero, which conducts Phase I and Phase II clinical trials for pharmaceutical companies, struggled financially over the past year and filed for bankruptcy in March. The move was spurred by a yearlong investigation the Food and Drug Administration conducted into allegations of fraud by chemists in Cetero’s Houston laboratory, who had falsified clinical trial records to be paid overtime.
The FDA investigation was resolved in April, and PRACS Institute is still redoing some work for the pharmaceutical companies whose records were affected by the investigation.