Charles River Laboratories International has acquired Oncotest, a Freiburg, Germany-based CRO providing discovery services for oncology, one of the largest therapeutic areas for biopharmaceutical R&D spending.
Oncotest offers an integrated portfolio of target discovery and validation services for preclinical oncology researchers. The company specializes in in vivo pharmacology services, leveraging an extensive collection of more than 400 patient-derived xenograft (PDX) tumor models, as well as a full range of in vitro assays using both commercially available and proprietary PDX-derived cell lines.
Integrated with Charles River’s broader portfolio of human xenografts, syngeneic and humanized immunotherapy research models, flow cytometry and IVIS imaging services, the acquisition creates a premier oncology portfolio for the validation of novel cancer therapies. With facilities in both North America and Europe, Charles River’s enhanced capabilities will enable the company to provide expert support for clients’ drug discovery programs, including compound design and synthesis, hit-to-lead, high throughput screening (HTS) and lead-to-candidate services.
James Foster, chairman, president and chief executive officer of Charles River said, “Global biopharmaceutical clients are increasingly demanding a full suite of oncology capabilities from a single partner, including PDX tumor models, cell lines, imaging services and immuno-oncology tools. With Oncotest, Charles River Discovery Services now has one of the most comprehensive and translational portfolios of oncology discovery services in the early-stage CRO industry.”
The purchase price was about €34 million in cash ($36 million), subject to certain post-closing adjustments. In addition to the initial purchase price, the transaction includes a potential additional payment of €2 million based on future performance ($2 million). The purchase price implies a multiple of about 11x adjusted EBITDA based on the trailing 12 months ended September 2015.