Charles River to Acquire Cell and Gene Therapy Manufacturer Cognate BioServices for $875 million
February 18, 2021
Rare Daily Staff
Charles River Laboratories said it has signed a definitive agreement to acquire cell and gene therapy contract development and manufacturing organization Cognate BioServices for approximately $875 million.
Cognate has extensive experience producing various cell types and technologies used in cellular immunotherapy and immuno-oncology, regenerative medicine, and advanced cell therapy. Headquartered in Memphis, Tennessee, it has operations in North America and Europe with more than 500 employees.
Charles River said the acquisition will establish it as a premier scientific partner for cell and gene therapy development, testing, and manufacturing, providing clients with an integrated solution from basic research and discovery through CGMP production.
Cognate is expected to generate annual revenue of approximately $140 million in 2021 and is expected to grow at least 25 percent annually over the next five years. The transaction is expected to close by the end of the first quarter of 2021.
“Cognate BioServices presents a unique opportunity to expand into a high-growth, value-added sector of the CDMO market and enhance our ability to meet our clients’ needs in emerging areas of scientific innovation,” said James Foster, chairman, president and CEO of Charles River Laboratories. “This acquisition will be an exceptional strategic fit, adding to our comprehensive suite of early-stage research and manufacturing support solutions and enabling us to achieve our goal of establishing a single scientific partner to provide biopharmaceutical clients with an integrated solution to help accelerate their cell and gene therapy programs from discovery and non-clinical development through commercialization.”
Photo: James Foster, chairman, president and CEO of Charles River Laboratories
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