Charles River Laboratories to acquire MPI Research for $800m
In a strategic move to bolster its position in the pharmaceutical research sector, Charles River Laboratories International, Inc. has agreed to acquire Michigan-based non-clinical contract research organization (CRO), MPI Research, for approximately $800 million. This acquisition is set to enhance Charles River’s capabilities in early-stage drug development and expand its service offerings across the biopharma and medical device industries.
Expanding Capabilities and Market Reach
The acquisition is a key part of Charles River’s strategy to enhance its global early-stage CRO services, aiming to provide comprehensive support across the drug discovery and development continuum. With MPI’s recognized expertise in scientific research and flexible project management, Charles River expects to strengthen its offerings and provide an even more attractive value proposition to its clients and shareholders.
MPI Research brings to Charles River a suite of specialized capabilities, including ototoxicity and abuse liability testing, which are crucial in the regulatory approval processes for new drugs and medical devices. Additionally, MPI’s facilities will add significant capacity and technological prowess to Charles River’s existing services in general and specialty toxicology.
Strategic Fit and Future Outlook
James C. Foster, CEO of Charles River Laboratories, emphasized the strategic fit of the acquisition, stating, “MPI is an exceptional strategic fit for Charles River because it incorporates the key attributes we require in an acquisition: access to growing end markets, high-quality services, scientific expertise, and complementary capabilities.” He further noted that MPI’s one-million-square-foot facility in Michigan will provide the needed capacity to meet current and future demands.
The transaction, which is expected to close in the second quarter of 2018, is subject to regulatory approvals and customary closing conditions. Post-acquisition, MPI will be integrated into Charles River’s Discovery and Safety Assessment segment, enhancing the company’s ability to serve its rapidly growing biotechnology client base, which Charles River identifies as its fastest-growing market segment.
This acquisition represents a significant development in the pharmaceutical and biotechnology research industry, reflecting a trend towards consolidation in the CRO market. By merging MPI’s specialized testing services and scientific expertise with Charles River’s extensive portfolio, the combined entity is poised to offer enhanced services and access to new markets, thereby driving growth and innovation in drug development.
As Charles River Laboratories continues to expand its reach and capabilities through strategic acquisitions like that of MPI Research, the pharmaceutical and biotechnology sectors are likely to see accelerated advancements in drug and device development, benefiting the broader medical community and enhancing patient care.
