Charles River to build Shanghai R&D site

USA-based drug-discovery partner Charles River Laboratories plans to build a preclinical testing facility in China as part of its expansion into Asia. As part of the move, the company has signed a joint venture agreement with Shanghai BioExplorer, a China-based provider of preclinical services, to form Charles River Laboratories Preclinical Services-China.

On the day of the news, March 23, shares in Charles River rose 0.2% to $45.76. The JV will be majority-owned and controlled by the US firm. The transaction is subject to customary closing conditions, including Chinese regulatory approval, and is expected to complete by the end of the second quarter of the year.

As part of this agreement, Charles River will construct a 50,000-square-foot preclinical services facility in Shanghai, which is expected to open in mid-2008, and will provide a wide range of discovery and development services, including Good Laboratory Practice and non-GLP toxicology studies. These services will meet the US Food and Drug Administration's quality standards, as well as Charles River's animal welfare policies. The firm intends to use its own research models in the new Shanghai facility, which the company believes will enhance the quality of research.