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March 23, 2007
By: Tim Wright
Editor-in-Chief, Contract Pharma
Charles River Laboratories International, Inc. has plans to expand its global footprint in Asia as part of its strategy to support customers’ R&D efforts in this growing market. The first phase of expansion includes the signing of a joint venture agreement with Shanghai BioExplorer Co., Ltd., a Shanghai, China-based provider of preclinical services, to form Charles River Laboratories Preclinical Services – China. The joint venture will be majority owned and controlled by Charles River. The transaction is subject to customary closing conditions, including Chinese regulatory approval, and is expected to close by the end of 2Q2007. As part of this agreement, Charles River will construct a 50,000-sq.-ft. preclinical services facility in Shanghai. The facility, which is expected to open in mid-2008, will provide discovery and development services, including GLP and non-GLP toxicology studies, in accordance with FDA and the company’s quality standards, as well as stringent animal welfare policies. James C. Foster, chairman, president, and chief executive officer of Charles River, commented, “Charles River Laboratories intends to be the leading global contract research organization to provide preclinical services in China that are compliant with international regulatory agencies. This exciting project is the next step in a strategy that demonstrates our continued commitment to invest in the growth of our business and to support our global customer base. We expect demand for both research models and preclinical services in Asia to significantly increase over the next several years as pharmaceutical and biotechnology companies expand their research efforts in this market, and we intend to play a leading role in this emerging opportunity.”
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