Charles River Laboratories Acquires PathoQuest and K.F. (Cambodia)

Charles River Laboratories (CRL) exercised its option to acquire the remaining 79% equity stake that it does not already own of PathoQuest, a Paris, France-based provider of next generation sequencing (NGS) solutions for manufacturing quality-control testing for biopharmaceutical companies. Following its initial investment in 2018, the company has already acquired an approximate 21% equity stake in PathoQuest. The purchase price for the remaining 79% equity stake is approximately $60 million.

The proposed acquisition of PathoQuest will strengthen Charles River’s existing biologics testing capabilities by adding rapid, in vitro GMP and non-GMP testing solutions, according to CRL’s James C. Foster, chair, president, and CEO, who added that PathoQuest’s NGS approach supports Charles River’s alternative methods advancement project (AMAP) initiative by using new approach methodologies (NAMs) to replace animal use in viral safety workflows while also accelerating clients’ quality-control testing timelines and the overall biologics development process.

CRL also signed an agreement to acquire the assets of K.F. (Cambodia), which provides nonhuman primates (NHPs) for regulatory-required biomedical, pharmaceutical, and toxicological research purposes. The total purchase price is approximately $510 million. Officials at CRL say the planned acquisition is expected to further strengthen and secure the supply chain for CRL’s discovery and safety assessment (DSA) segment and “generate meaningful operating margin improvement through significant cost savings on NHP supply.”

“As the biopharmaceutical industry evolves, we are committed to remaining a leader in regulatory-required drug development solutions,” stated Foster. “We intend to accomplish this by pairing the best traditional testing methods to ensure patient safety with scientific advancements and innovative solutions to drive greater efficiency and success in our clients’ drug development programs. Today’s announcement of the planned acquisitions will help us accomplish these goals and invest in core areas of growth.

“The addition of K.F. will promote enhanced efforts to secure and safeguard our supply chain for traditional in vivo testing practices, while PathoQuest will further enable us to champion methodologies to reduce animal use.”

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