Charles River splits off and divests CDMO business
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.
