CRL to Acquire WuXi PharmaTech
Year:2010 ISSUE:10
Click:335    DateTime:Nov.02,2010
CRL to Acquire WuXi PharmaTech    

Charles River Laboratories International, Inc. (NYSE: CRL), a leading global provider of research models and associated services and of preclinical drug development services, and WuXi PharmaTech (Cayman) Inc. (NYSE: WX), a leading drug research and development outsourcing company with expertise in discovery chemistry and with operations in China and the United States, announced on April 26th that they have signed a definitive agreement under which Charles River and WuXi will combine in a cash and stock transaction valued at approximately US$1.6 billion.
   The combined company, which will retain the name Charles River, will offer an expanded portfolio of products and outsourced services to multinational pharmaceutical, biotechnology and medical device companies and academic and government institutions. The combination will create a "true win-win scenario". Through this transaction, CRL will be able to "expand its presence in China" and WuXi PharmaTech will "accelerate its good laboratory practice (GLP) toxicology capabilities".
   As a result of the combination, Charles River expects to achieve pre-tax cost savings and synergies of approximately US$20 million on an annualized basis, beginning in 2011, CRL reports.
   This transaction will be largest one in China's pharmaceutical industry.
   WuXi PharmaTech (Cayman) Inc. (NYSE: WX) announced on May 12th its net revenues for first quarter 2010 increased 36% YOY to US$80.6 million, of that, China-based laboratories services net revenues increased 20% to US$50 million, and 14% YOY revenue growth was achieved in U.S.-based operations.