Charles River acquires UK-based KWS BioTest for $20m

Charles River Laboratories has acquired KWS BioTest in a deal that will expand the company’s immunology contract research services and geographical footprint.

KWS BioTest is a UK-based contract research organization (CRO) that specializes in in vitro and in vivo discovery testing services for immuno-oncology as well as inflammatory and infectious diseases.

James C. Foster, chairman, president and CEO of Charles River said the acquisition enhances the company’s position as a single-source provider for a broad portfolio of discovery services.

KWS increases our ability to support clients’ early-stage drug research in critical therapeutic areas, and expands our geographic footprint in the United Kingdom,” he said in a press release.

Charles River acquired KWS for approximately £15m ($20m) in cash.

The transaction – which is not expected to be material to 2018 GAAP or non-GAAP results from operations – also includes a potential additional payment of up to £3m ($4m) based on future performance.

The company is not providing any additional comment at this time.

Committing to oncology

In November, Aidan Synnott, executive director, discovery oncology at Charles River, spoke of the company’s commitment to the in vitro oncology space, commenting that its partnership with InSphero AG was “further affirmation” of this commitment.

Earlier in 2017, the company also announced a partnership with OcellO to expand its patient-derived xenograft (PDX) model capabilities.

Birgit Girshick, corporate vice president, Global Discovery Services at Charles River said syngeneic models are “a workhouse tool for immuno-oncology programs,” adding that there has been a “massive demand” for genomic characterization.

We’ve seen an increased focus on immuno-oncology in cancer research, and with it there has been a rise of the use of patient-derived tumors in humanized models,” she told us in May.

Charles River also expanded its CRISPR/Cas9 services offering with a license from ERS Genomics in December.