PRACS Institute, an early-stage CRO, has halted operations and filed for bankruptcy. Without notice, the company closed its facilities in Fargo, ND, Miami, St. Louis, Toronto and Ontario, and dismissed several hundred employees. PRACS had approximately 20 to 30 studies under way in the U.S. and 10 in Canada.
PRACS was established following the U.S. District Bankruptcy Court's approval of the sale of Cetero Research to its investor group, Freeport Financial, in June 2012. Cetero had filed for Chapter 11 bankruptcy following an investigation by the FDA regarding falsified documents found at a company lab in Houston.