Charles River splits off and divests CDMO business

By Dani Bancroft contact

- Last updated on GMT

Charles River splits off and divests CDMO business
Charles River Laboratories International Inc. has sold off its CDMO business QS Pharma LLC, saying the small-molecule manufacturing business was “not optimized” within the firm's portfolio.

Charles River acquired QS Pharma as part of Ohio-based WIL Research Laboratories LLC in January​ 2016, for a total of for $586m cash.

However, as an early-stage contract research organization (CRO), Charles River stated that QS Pharma was “not optimized within its portfolio at current scale​”, in the firm’s end of year report.

Amy Cianciaruso, a spokesperson for Charles River, told Outsourcing-Pharma that Pennsylvania-based QS Pharma accounted for less than 10% of WIL Research’s total revenue.

Instead, QS Pharma was sold​ to the UK-based outsourcing specialist Quotient Clinical Ltd., which is looking to expand its US presence.

The value of $75m USD was generated from the sale, which Charles River said could be deployed for use in other “long-term” growth opportunities.

When asked about why Charles River wanted to acquire WIL Research, Cianciaruso explained: “WIL Research was an exceptional strategic fit for Charles River because it incorporated the key attributes we require in an acquisition: high-quality services, scientific expertise, complementary capabilities, and access to growing end markets.”

“The addition broadened our portfolio in safety assessment services and bioanalysis. It also expanded our geographic safety assessment​ footprint, particularly in continental Europe, providing needed capacity to meet current and future demand,” ​she added.

In the report, Charles River also says the acquisitions of Blue Stream Laboratories ​and WIL Research​’s CDMO services contributed 9.2% to Manufacturing revenue growth in Q4 of 2016. 

The transaction of QS Pharma completed February 10.

(Image: iStock/Radachynskyi)

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