The company said this is the first phase of an expansion programme in Asia, designed to support growing demand in this booming market.
"We expect demand for both research models and preclinical services in Asia to significantly increase over the next several years as pharmaceutical and biotechnology companies expand their research efforts in this market, and we intend to play a leading role in this emerging opportunity," said James Foster, chairman, president, and CEO of Charles River.
China has recently been dubbed as a favourite destination for outsourcing drug development and there is a growing number of preclinical and clinical studies being conducted in the country, especially due to the low costs involved.
Indeed, according to a recent report published by the UK Trade and Investment (UKTI) department, the local Chinese industry estimates that Phase I trials can be conducted in China for around 15 per cent of the equivalent cost in a Western country, while Phase II studies cost 20 per cent of the price in the west.
Added to that is the speed of studies conducted in China which has also contributed to the country's appeal.
As pharmaceutical and biotechnology companies increase their presence in Asia, Charles River intends to focus on providing its customers with services from drug discovery through proof of concept, the company said.
As part of this latest initiative with BioExplorer, which will form a new subsidiary, Charles River Laboratories Preclinical Services - China, the firm will build a 50,000 square foot facility in Shanghai, due to open in next year and offer early-stage drug development services.
The facility will conduct Good Laboratory Practices (GLP) and non-GLP toxicology studies that meet the US Food and Drug Administration (FDA) standards as well as Charles River's strict animal welfare policies, the company said in a statement.
In addition, Charles River intends to use its own research models in the new Shanghai facility, which the firm believes will enhance the quality of the studies performed there.
Financial details were not disclosed, but Charles River will serve as the majority owner.