Charles River acquires Agilux Laboratories
M&A deal enhances Charles River’s early-stage capabilities in bioanalytical services
WILMINGTON, Mass.—In late September, Charles River Laboratories announced that it had acquired Agilux Laboratories Inc., a Worcester, Mass.-based contract research organization (CRO) that provides a suite of integrated discovery small- and large-molecule bioanalytical services and drug metabolism and pharmacokinetic services, as well as pharmacology services. The company’s combination of early-stage services is said to enhance the flexibility and speed of its biopharmaceutical clients’ lead identification, optimization and candidate selection efforts.
Agilux was acquired from a holding company controlled by the company’s founders and Ampersand Capital Partners, its only institutional investor.
The addition of Agilux’s integrated discovery capabilities is complementary to Charles River’s existing nonclinical portfolio. Providing a more comprehensive service offering will improve the efficiency of clients’ early-stage research efforts by enabling them to seamlessly transition their drug candidates through the discovery and safety assessment process, Charles River believes, and it adds that the acquisition of Agilux enhances its ability to work with clients earlier in the drug research process, and maintain the relationship as molecules progress through nonclinical development.
“Agilux reinforces the linkage between our discovery and safety assessment capabilities, and provides clients with a comprehensive testing solution that spans their discovery and regulated drug development needs,” said James C. Foster, chairman, president and CEO of Charles River. “We expect to leverage Agilux’s strong client relationships in the Boston-Cambridge biohub, one of the most significant concentrations of medical research in the world, and expand the reach of its discovery bioanalytical services offering to Charles River’s global client base.”
The purchase price was approximately $64 million in cash, subject to certain post-closing adjustments. Agilux is expected to generate full-year revenue of $27 million in 2016. The acquisition is expected to be neutral to Charles River’s non-GAAP earnings per share in the fourth quarter of 2016, and be slightly accretive to non-GAAP earnings per share in 2017. Items excluded from non-GAAP earnings per share are expected to include all acquisition-related costs, which primarily include amortization of intangible assets, transaction costs and certain third-party integration costs.