Charles River Laboratories International, Inc. (NYSE: CRL) is significantly boosting its capabilities with a new acquisition. The research giant is buying Cognate BioServices, Inc. from EW Healthcare Partners for $875 million. The acquisition and associated fees are expected to be financed through Charles River’s existing credit facility and cash.
Cognate BioServices is a cell and gene therapy contract development and manufacturing organization (CDMO). The company has extensive experience producing various cell types and technologies used in cellular immunotherapy and immuno-oncology, regenerative medicine, and advanced cell therapy. Cognate BioServices’ minority shareholders include Medivate Partners, BlackRock and a sovereign wealth fund. In 2021, the company is expected to generate $140 million in revenue.
The transaction significantly expands Charles River’s capabilities in the cell and gene therapy sector. Cognate is expected to be reported as part of Charles River’s Manufacturing Support segment.
According to search results in our Healthcare Deals Database, Charles River last announced a deal in August 2020, adding Cellero for a modest $38 million in cash. Cellero (formerly Key Biologics and Astarte Biologics) is a premier provider of cellular products for cell therapy developers and manufacturers worldwide.
For the past year, CDMOs focused on cell and gene therapy have been hot targets for investors. In February 2020, Catalent, Inc. (NYSE: CTLT) purchased MaSTherCell Global, a technology-focused cell and gene therapy CDMO for $315 million. And just back in January 2021, Ampersand Capital Partners purchased Genezen Laboratories for an undisclosed sum.
