Charles River to acquire MPI Research for $800m
Pharma acquisition news: US-based Charles River Laboratories International has agreed to acquire non-clinical contract research organization (CRO) MPI Research for about $800 million.
Based in Michigan, MPI offers comprehensive testing services to biopharma and medical device companies across the world. The Massachusetts-based Charles River, on the other hand, provides a variety of pre-clinical and clinical lab services for the pharma, biotech and medical device sectors.
Charles River acquisition of MRI is being done to improve the former’s global early-stage CRO by boosting its ability to partner with clients across the drug discovery and development sector.
The transaction is expected to give Charles River improved access to growing end markets, build scale to cope up with demand, enlarge its scientific bench strength. Most importantly, the acquisition of MPI is to help Charles River in offering an attractive value proposition for its clients and shareholders.
Charles River acquisition of MRI is said to be in line with the former’s strategy to grow its biotechnology client base, which it claims its fastest-growing market segment.
According to Charles River, MPI has become an expert of sorts in supporting the biotechnology sector and is well known for its scientific know-how, flexible and responsive project management along with client service.
The transaction will see Charles River add the ototoxicity and abuse liability capabilities of MPI besides growing its existing capabilities in general toxicology and specialty toxicology such as ophthalmology, molecular biology, juvenile toxicity, surgery, and also medical device testing.
James C. Foster, CEO of Charles River Laboratories commenting on Charles River acquisition of MRI, said: “In addition to meeting our disciplined acquisition criteria, 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. MPI’S one-million-square-foot, single-site facility in Michigan will provide needed capacity to meet current and future demand.”
Post-acquisition, MPI is likely to come under Charles River’s Discovery and Safety Assessment segment.
Charles River acquisition of MRI, which will be subject to regulatory approvals and customary closing conditions, is anticipated to be completed in Q2 2018.