Policy & Regulation
Charles River Laboratories announces divestiture of RMS Japan and CDMO Sweden
13 October 2021 -

Pharmaceutical services company Charles River Laboratories International Inc (NYSE:CRL) reported on Tuesday the completion of the sale of its Research Models and Services operations in Japan (RMS Japan) and its gene therapy CDMO site in Sweden (CDMO Sweden).

The company disposed of the RMS Japan operations to The Jackson Laboratory (JAX) for about USD63m in cash, subject to customary closing adjustments. The RMS Japan operations provide research models and associated services to support clients in the Japanese market. It has 260 employees and generated annual revenue of USD46m in 2020. JAX will produce and distribute Charles' research models in Japan.

Concurrently, the company sold the gene therapy CDMO site in Sweden to a private investor group for USD52m in cash with potential contingent payments of up to an additional USD25m, subject to certain adjustments. The CDMO Sweden site produces plasmid DNA for use in gene therapies, as well as other CDMO inputs. It has 130 employees and generated annual revenue of about USD10m in 2020.

Charles River expects both the sales to reduce revenue by nearly USD20m and non-GAAP diluted earnings per share by nearly USD0.10 in the Q4 2021, which will be reflected in its 2021 financial guidance that will be updated in November.