Charles River Laboratories International, Inc announced the signing of an agreement to acquire the business and assets of Piedmont Research Center, LLC, a wholly-owned subsidiary of PPD, Inc for $46 million in cash. North Carolina-based Piedmont Research Center (PRC) provides preclinical discovery services focused on efficacy studies in oncology and other therapeutic areas for pharmaceutical and biotechnology clients. The acquisition is expected to be neutral to earnings per share on both a GAAP and non-GAAP basis in 2009. The transaction is expected to close during the second quarter, subject to customary closing conditions.
PRC offers non-GLP (Good Laboratory Practice) preclinical efficacy testing services with expertise in the key therapeutic area of oncology. The company also offers a range of other in vivo, in vitro and analytical services to supplement its core pharmacology offering. PRC, which will continue to operate from its North Carolina headquarters, will significantly expand the oncology expertise offered through Charles River Discovery and Imaging Services.
As our clients increasingly align their research and development efforts by therapeutic area, we believe it is critical that we provide deep expertise in their key areas of focus. Through Charles River Discovery and Imaging Services, which includes MIR Preclinical Services (acquired in 2008), we have established ourselves as a premier provider of non-GLP pharmacology and in vivo imaging services for the evaluation of compound efficacy. Our therapeutic areas of expertise include oncology, cardiovascular, metabolism and inflammation, which represent four of the largest areas of biopharmaceutical research and development. We believe that we now have a market-leading platform that provides high-quality contract services to pharmaceutical and biotechnology partners as they increasingly choose strategic outsourcing as the means by which to improve pipeline throughput and reduce costs.
James C Foster, chairman, president and chief executive officer of Charles River said, "As pharmaceutical and biotechnology companies increasingly choose strategic outsourcing as the means to accelerate their drug development efforts, they need to rely on their service partners to provide scientific depth and expertise in therapeutic areas. The addition of PRC's expertise, particularly in oncology, expands Charles River Discovery and Imaging Services' portfolio of efficacy testing services to better support our clients' needs. PRC's long history as a trusted provider to the biopharmaceutical industry fits extremely well with Charles River's focus on deep scientific expertise and exceptional client service. We welcome PRC to the Charles River family."
Beth Hollister, vice president and founder of Piedmont Research Center said, "We are very pleased to be joining Charles River. Combining the service platforms of PRC and Charles River's existing Discovery and Imaging Services business will create a market-leading provider of preclinical discovery services. Becoming part of a larger preclinical services organization will enhance our ability to forge broader and deeper partnerships with our clients and facilitate their ability to bring critical therapeutics to market faster and more cost effectively."
Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts.