Charles River to Acquire Piedmont Research Center
April 03 2009 - 8:00AM
Business Wire
Charles River Laboratories International, Inc. (NYSE: CRL)
announced today the signing of an agreement to acquire the business
and assets of Piedmont Research Center, LLC, a wholly-owned
subsidiary of PPD, Inc. (NASDAQ: PPDI) 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.�
Caution Concerning
Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as �anticipate,� �believe,� �expect,� �will,� �may,�
�estimate,� �plan,� �outlook,� and �project� and other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. Forward-looking
statements include statements in this press release regarding the
intended acquisition of Piedmont Research Center (PRC), and Charles
River�s expectations with respect to the impact of PRC on the
Company, its service offering and earnings. Forward-looking
statements are based on Charles River�s current expectations and
beliefs, and involve a number of risks and uncertainties that are
difficult to predict and that could cause actual results to differ
materially from those stated or implied by the forward-looking
statements. Those risks and uncertainties include, but are not
limited to, the ability to successfully consummate the acquisition
of PRC. A further description of these risks, uncertainties, and
other matters can be found in the Risk Factors detailed in Charles
River's Annual Report on Form 10-K as filed on February 23, 2009,
as well as other filings we make with the Securities and Exchange
Commission. Because forward-looking statements involve risks and
uncertainties, actual results and events may differ materially from
results and events currently expected by Charles River, and Charles
River assumes no obligation and expressly disclaims any duty to
update information contained in this news release except as
required by law.
About Charles River
Accelerating Drug Development. Exactly. 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. Our 8,700 employees worldwide are focused on
providing clients with exactly what they need to improve and
expedite the discovery, development through first-in-human
evaluation, and safe manufacture of new therapies for the patients
who need them. To learn more about our unique portfolio and breadth
of services, visit www.criver.com.
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