Charles River Laboratories is parting ways with two divisions for about $115 million, including a Swedish contract developer and manufacturer site snagged in the $875 million acquisition of Cognate Bioservices in March.
The Japanese research models and services unit was sold to Jackson Laboratory for about $63 million in cash, while the gene therapy CDMO site in Sweden was handed over to a private investor group for about $52 million in cash as of Tuesday, according to a statement. The CDMO deal could grow by another $25 million upon potential contingent payments, Charles River said Tuesday.
The research and services operations has 260 employees and bolstered Charles River’s 2020 revenue by $46 million. Charles River and Jackson Laboratory have been distribution partners on the unit for more than two decades. Following the divestiture, the companies have a technology license agreement for Jackson to produce and distribute the research models in Japan.
The gene therapy manufacturing plant in Sweden was picked up through Charles River’s acquisition of Cognate in the spring. That plant, which has 130 employees, produces plasmid DNA and helped add $10 million to the books last year.
While the plant is no longer a part of Charles River, the CRO still has access to cell and gene therapy CDMO capabilities at operations in the U.S. and the U.K., the company said.
Charles River expects revenue to drop nearly $20 million as a result of the sales.