CRL revs boosted by Argenta and Biofocus; buys ChanTest

30-Oct-2014 - Last updated on 30-Oct-2014 at 16:07 GMT

CRL buys ion channel tech firm ChanTest citing US FDA comments on testing

Weaker demand in Europe and Japan saw revenue from Charles River Laboratories' animal models business decline in Q3, but Argenta and BioFocus boosted discovery sales.

The preclinical and early phase contract research organisation (CRO) reported a 12% hike in revenue, to $328m, for the three months ended September 27 and net income of $32.2m, up $1m on the year earlier period.

The CRO highlighted Argenta and BioFocus – acquired in March from Galapagos NV – as the key drivers for its discovery business in the period, revenue from which increased 25.1% from $112m in the three months to the ned of September last year.

Research models revenue was down $200,000 because higher sales in North America “were offset by lower sales in Europe and Japan,” according to CRL, which said “rationalization of biopharmaceutical infrastructure in those locales continued.”

Manufacturing segment sales increased 13% to $62.7m.

ChanTest acquisition

CRL also announced another acquisition, this time buying Ohio-based ChanTest.

CEO James Foster said: “We are continuing to expand our portfolio with key strategic acquisitions, and I’m pleased to announce today that we have acquired ChanTest Corporation, a leading provider of ion channel testing services.

“ChanTest’s expertise will be invaluable to our clients as they comply with the expected implementation of new FDA guidelines for risk assessment and discover new therapies for diseases involving ion channels. We are very pleased to welcome ChanTest to the Charles River family,” Foster concluded.

CRL paid $52m ChanTest, citing safety testing guidelines on ion channels that were proposed recently by the US Food and Drug Administration (FDA) as a driver for the deal.

“ChanTest is extremely well positioned to support this expanding demand” CRL said, adding that ChanTest “offers a panel of more than 120 validated assays to test ion channels, which we believe is the most comprehensive panel in the industry.”