Charles River Laboratories Completes the Acquisition of Cognate BioServices
March 29 2021 - 04:15PM
Business Wire
Charles River Laboratories International, Inc. (NYSE: CRL)
announced today that it has completed the previously announced
acquisition of Cognate BioServices, Inc. for approximately $875
million, subject to customary closing adjustments.
Cognate BioServices is a premier, cell and gene therapy contract
development and manufacturing organization (CDMO) offering
comprehensive manufacturing solutions for cell therapies, as well
as for production of plasmid DNA and other inputs in the CDMO value
chain. The acquisition establishes Charles River as a premier
scientific partner for cell and gene therapy development, testing,
and manufacturing, providing clients with an integrated solution
from basic research and discovery through CGMP production. The
strategic benefits of the transaction include: providing broad
capabilities across the major CDMO platforms for cell and gene
therapies; driving greater efficiency and accelerating clients’
speed-to-market by integrating manufacturing and the required
analytical testing; enhancing Charles River’s growth potential with
a significant expansion in the high-growth cell and gene therapy
sector; and providing a compelling value proposition for both
clients and shareholders. Headquartered in Memphis, Tennessee,
Cognate has operations in North America and Europe with over 500
employees.
James C. Foster, Chairman, President and Chief Executive Officer
of Charles River Laboratories, commented, “We are pleased to
welcome the exceptional team at Cognate to the Charles River
family, and look forward to working together to provide clients
with an integrated solution to help accelerate their cell and gene
therapy programs from discovery and non-clinical development
through commercialization. We believe Cognate will meaningfully
enhance our long-term revenue and earnings growth potential because
of the synergistic fit with Charles River, the market growth
potential, and the emerging role of advanced drug modalities as
treatments for oncology, rare diseases, and other therapeutic
areas.”
Caution Concerning Forward-Looking
Statements
This press 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 news release regarding the
acquisition of Cognate BioServices and Charles River’s expectations
with respect to the impact of Cognate on Charles River, its service
offerings, client perception, revenue, revenue growth rates, and
earnings; Charles River’s projected future performance including
revenue and earnings per share; Charles River’s expected
operational synergies; as well as Charles River’s future growth in
the area of safety assessment. 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 integrate the acquisition of Cognate. 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 17, 2021, 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
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 dedicated employees are
focused on providing clients with exactly what they need to improve
and expedite the discovery, early-stage development 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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version on businesswire.com: https://www.businesswire.com/news/home/20210329005536/en/
Investor Contact: Todd Spencer Corporate Vice President,
Investor Relations 781.222.6455 todd.spencer@crl.com
Media Contact: Amy Cianciaruso Corporate Vice President, Public
Relations 781.222.6168 amy.cianciaruso@crl.com
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