UBC-CogState Partnership Short-Lived
The partnership, originally lauded as a way for UBC to offer clients computerized cognitive testing as part of the clinical research process, ended quietly, and neither company provided much detail as to why. UBC will retain its 15% ownership stake in CogState, which the company gained as part of the original partnership agreement.
“UBC and CogState mutually agreed to pursue the opportunity in the marketplace independently, rather than through a formal alliance,” said UBC president and chief financial officer Mark Clein.
UBC originally teamed with CogState, a company headquartered in Melbourne, Australia, based on a long-standing relationship between the two companies. CogState had developed computerized versions of a variety of cognitive tests, which UBC planned to offer to its clients.
“We will continue to work on existing projects together and we have great respect for their capabilities and personnel,” Clein said. At the time the UBC-CogState partner ship was announced last August, UBC said it had seen an increase in client requests for computerized cognitive testing, which standardizes results and reduces variability in clinical trials. Although the partnership has ended, Clein said, the demand for these types of services has not.
“UBC is continuing to see interest among our clients for services related to cognition, and we plan to aggressively develop both our internal capabilities as well as relevant industry relationships that will help us serve the needs of our clients,” he said.
As recently as the release of CogState’s 2008 year-end financial statement, the company listed its clinical trial business and the relationship with UBC as key focus areas for 2009.
CogState, which offers cognition testing in the areas of clinical trials, sport, health and the workplace, grew revenues from clinical drug trials by 65% in 2008, according to the company’s financial statement. The number of pharmaceutical company customers also increased 114%. Revenue from CogState Clinical Trials increased nearly $1.5 million in 2008 over 2007, with revenues of $3.55 million in 2008 compared with $2.15 million in 2007. Clinical trials represented 94% of the company’s total revenue in 2008.
CogState plans to increase resources in the United States and the UK to meet increased demand for its own technology solution, according to a UBC statement.