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|Charles River Laboratories Expands Global Reach to China|
WILMINGTON, Mass.--(BUSINESS WIRE)--March 23, 2007--Charles River Laboratories International, Inc. (NYSE:CRL) announced today the expansion of its global footprint in Asia as part of its strategy to support customers' research and development efforts in this rapidly growing market. As pharmaceutical and biotechnology companies increase their presence in Asia, Charles River intends to remain the strategic partner of choice to fully support customers' global needs from drug discovery through proof of concept.
The first phase of this expansion includes the signing of a joint venture agreement with Shanghai BioExplorer Co., Ltd., a Shanghai, China-based provider of preclinical services, to form Charles River Laboratories Preclinical Services - China. The joint venture will be majority owned and controlled by Charles River. The transaction is subject to customary closing conditions, including Chinese regulatory approval, and is expected to close by the end of the second quarter of 2007.
As part of this agreement, Charles River will construct a 50,000-square-foot preclinical services facility in Shanghai. The facility, which is expected to open in mid-2008, will provide a wide range of discovery and development services, including GLP and non-GLP toxicology studies. These services will meet the U.S. Food and Drug Administration's and Charles River's standards for quality, as well as Charles River's stringent animal welfare policies. Charles River intends to use its own research models in the new Shanghai facility, which the Company believes will enhance the quality of the studies performed there.
James C. Foster, Chairman, President, and Chief Executive Officer of Charles River Laboratories, commented, "Charles River Laboratories intends to be the leading global contract research organization to provide preclinical services in China that are compliant with international regulatory agencies. This exciting project is the next step in a strategy that demonstrates our continued commitment to invest in the growth of our business and to support our global customer base. We expect demand for both research models and preclinical services in Asia to significantly increase over the next several years as pharmaceutical and biotechnology companies expand their research efforts in this market, and we intend to play a leading role in this emerging opportunity."
Caution Concerning Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "will," "may," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements include the statements in this press release regarding Charles River's expectation regarding the prospects of the joint venture with Shanghai BioExplorer Co., Ltd., including expectations regarding the eventual closing of the joint venture, the timing of facility construction, opportunities for the preclinical business generated by this arrangement and future demand for products and services provided by Charles River and the joint venture. Forward-looking statements are based on Charles River's current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A further description of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in Charles River's Annual Report on Form 10-K as filed on February 27, 2007, as well as other filings we make with the Securities and Exchange Commission. Charles River assumes no obligation and expressly disclaims any duty to update information contained in this release except as required by law.
About Charles River Laboratories
Charles River Laboratories, based in Wilmington, Massachusetts, partners with global pharmaceutical and biotechnology companies, government agencies, and leading academic institutions to advance the drug discovery and development process, bringing drugs to market faster and more efficiently. Charles River's 8,000 employees serve clients worldwide. For more information on Charles River, visit our web site at www.criver.com.