Charles River Laboratories to divest a number of assets to IQVIA and GI Partners
The company has signed a definitive agreement to divest certain European assets within its Discovery Services business to IQVIA Holdings Inc. for approximately $145 million in cash, subject to customary closing adjustments.
In addition to the initial proceeds, the transaction includes potential additional payments to Charles River of up to $10m. The company will sell certain discovery services capabilities totalling $144m in 2025 annual revenue in the Discovery and Safety Assessment (DSA) segment, and the transaction is expected to close during the second quarter of 2026, subject to customary closing conditions.
It plans to divest five European sites that include certain discovery services capabilities in In vitro drug discovery services that primarily include medicinal chemistry and structural biology services (Cambridge, UK site); and certain pharmacology services, primarily in the areas of oncology, neuroscience, immunology, and advanced cell biology (Freiburg, Germany; Kuopio, Finland; Portishead, UK; and Leiden, Netherlands sites).
Charles River will retain other drug discovery capabilities totalling approximately 40 per cent of its Discovery Services revenue in 2025.
Charles River Laboratories’ Cambridge operation is housed at the 60,000 sq ft Robinson Building on Chesterford Research Park. It is focused on the early discovery phase, discovering new pharmaceutical products for clients.
CDMO and Cell Solutions
Charles River has also signed a definitive agreement to divest its CDMO and Cell Solutions businesses to GI Partners, primarily for future, contingent performance-based payments.
The CDMO business provides services related to the production of advanced therapies for gene-modified cell therapies, as well as gene therapies including viral vectors and plasmid DNA; and the Cell Solutions business provides human-derived cellular materials used in the development and production of cell therapies.
The company will sell its CDMO sites in Tennessee, Maryland, and the UK and its Cell Solutions site in California. The businesses generated combined annual revenue of $143m in 2025, including $117m in the Manufacturing Solutions segment and $26m in the Research Models and Services (RMS) segment. The transaction is expected to close during the second quarter of 2026, subject to customary closing conditions.
James C. Foster, Chair, President and CEO, said, “We are pleased to announce these planned divestitures today to demonstrate our continued progress on the actions outlined as part of the comprehensive strategic review conducted last year.
“We have decided to divest these assets after carefully evaluating our core capabilities and determining those that will drive the most synergistic growth with our broader portfolio going forward.
“We believe these actions will refine and further strengthen our portfolio, and will also enhance shareholder value by executing on our plans to drive long-term growth, greater efficiency, and operational excellence.”