- Signs Joint Venture Agreement with Chinese Partner
- Plans to Construct 50,000-Square-Foot Preclinical Facility in
Shanghai
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.
CONTACT: Investors:
Charles River Laboratories
Susan E. Hardy, 781-262-7616
Corporate Vice President, Investor Relations
or
Media:
Denterlein Worldwide
Diana Pisciotta, 617-482-0042
dpisciotta@denterleinworldwide.com
or
Charles River Laboratories
Barbara Grady, 978-658-6000 ext. 1331
Senior Marketing Communications Manager
SOURCE: Charles River Laboratories International, Inc.
