Charles River Laboratories International, Inc, a leading global provider of research models and associated services and pre-clinical drug development services, and WuXi PharmaTech (Cayman) Inc, a leading drug research and development outsourcing company with expertise in discovery chemistry and with operations in China and the United States, have signed a definitive agreement under which Charles River and WuXi will combine a cash and stock transaction valued at approximately US$ 1.6 billion.
The combined company, which will retain the name Charles River, will offer an expanded portfolio of products and outsourced services to multinational pharmaceutical, biotechnology and medical device companies and academic and government institutions who increasingly seek the flexibility to access high quality, early-stage drug development expertise from chemistry to man from one global company.
"This transaction revolutionizes the contract research landscape by creating the only global contract research organization or CRO, to offer fully integrated research and drug development services from molecule creation to first-in-human testing," said James C Foster, chairman, president and chief executive officer of Charles River.
"We regard this as a transformational transaction that sets a new standard in the outsourced drug development services industry," Foster continued. "For the first time, our existing and potential clients will be able to obtain support for their early-stage drug development needs from one company with unparalleled scientific depth and breadth in chemistry and biology. We will be a more valuable strategic partner to our clients by offering both upstream and downstream support for their efforts to bring new drugs to market. Further, we will be able to provide our integrated portfolio of products and services globally, affording clients the opportunity to work in the locale which suits them best: North America, Europe or China."
Dr Ge Li, chairman and chief executive officer of WuXi, said: "This combination represents a true win-win scenario that significantly expands the global reach and growth opportunities for both companies. As a result of this transaction, Charles River will be able to immediately expand its presence in China and avail itself of WuXi's expertise in chemistry services, while simultaneously, WuXi will be in a position to accelerate its good laboratory practice (GLP) toxicology capabilities. Together, we will offer our clients unparalleled support to meet their early-stage drug development needs."
"We have tremendous respect for WuXi and its skilled team, who have built a market-leading company with a significant presence in China, a region many of our clients consider to be the new frontier for drug development. The combination of WuXi and Charles River brings together two companies with a shared mission: to support and accelerate our clients' drug development efforts. Both companies' corporate cultures share a commitment to scientific expertise, exceeding clients' expectations, dedication to employees, and building a valuable enterprise for shareholders," concludes Foster.