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Charles River Laboratories will acquire WuXi PharmaTech for approximately $1.6 billion.
April 26, 2010
By: Tim Wright
Editor-in-Chief, Contract Pharma
Charles River Laboratories will acquire WuXi PharmaTech for approximately $1.6 billion. WuXi is a drug R&D outsourcing company with expertise in discovery chemistry, operating in China and the U.S. The combined company, to be called Charles River, will offer an expanded portfolio of products and services for early-stage drug development from chemistry to first in man, and is expected to close by the end of 2010. “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. 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 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.” Mr. Foster will continue to lead the combined company and Dr. Li will serve as corporate executive vice president and president of Global Discovery and China Services, a new reporting segment for the company. In addition, Dr. Li and two other WuXi directors will join the board of Charles River.
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