The combined company, which will retain the name Charles River, will offer a comprehensive portfolio of early-stage drug development services and expanded global presence by creating a global clinical research organizations (CRO) that will offer fully integrated drug development services from molecule creation to first-in-human testing. While Charles River is focused on preclinical and early-stage research, WuXi--one of the biggest Chinese CROs--is active in drug chemistry, such as making molecules to synthesize a drug. The combined company will be led by Charles River Chairman, President, and CEO of James Foster, while WuXi PharmaTech Chairman and CEO Ge Li, Ph.D., will become corporate executive vice president; Dr. Li will also be the president of global discovery and China services, a new segment.
"For the first time, our existing and potential clients will be able to obtain support for their early-stage drug development needs from one company with unparalleled scientific depth and breadth in chemistry and biology," said Mr. Foster, "We have tremendous respect for WuXi and it's skilled team, who have built a market-leading company with a significant presence in China, a region many of our clients consider to be the new frontier for drug development."
"This combination represents a true win-win scenario that significantly expands the global reach and growth opportunities for both companies," said Dr. Li. "As a result of this transaction, Charles River will be able to immediately expand its presence in China and avail itself of WuXi's expertise in chemistry services, while simultaneously WuXi will be in a position to accelerate its good laboratory practice (GLP) toxicology capabilities. Together, we will offer our clients unparalleled support to meet their early-stage drug development needs."
Charles River will offer a total of $21.25 per WuXi American Depositary Share (ADS); each WuXi ADS will get $11.25 in cash and $10 of Charles River common stock, the companies said in the joint statement.
Related Links:
Charles River Laboratories International
WuXi PharmaTech
