Charles River Laboratories International (CRL) has signed definitive agreements to acquire Frontage Holdings’ bioanalysis and drug metabolism and pharmacokinetics (DMPK) operations in Pennsylvania, US for roughly $470m in cash.
The deal includes potential payments reaching up to $75m depending on the business’ future financial performance. The units, located in Pennsylvania’s Exton, being sold generated around 40% of Frontage’s total revenue of $256.7m in 2025.
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To carry out the acquisition, CRL is taking part in a consortium with Frontage’s controlling shareholder, Hongkong Tigermed and Frontage board chairman Dr Song Li.
The consortium intends to privatise Frontage and delist the company from The Stock Exchange of Hong Kong via a court-sanctioned scheme of arrangement.
Following the privatisation, Frontage will separate its businesses, leaving CRL with sole ownership of the acquired Pennsylvania assets, while its remaining operations will transfer to Tigermed and Dr Li.
CRL CEO Birgit Girshick said: “The planned acquisition accelerates our strategy to expand our bioanalysis capabilities and enhance our offering in an attractive, high-growth market.
“As biologics and increasingly complex modalities become a larger part of development pipelines, clients are seeking scientific partners that can support programmes from early development through the clinic.
“By adding Frontage’s clinical bioanalysis expertise, talented scientific team, and strong client relationships, we will be better positioned to meet those evolving needs.”
The transaction includes two testing sites in Exton covering around 150,000ft², employing nearly 340 staff, and a Clinical Laboratory Improvement Amendments (CLIA)-certified central laboratory.
These facilities supply biomarker, bioanalysis, and DMPK testing for large and small molecules.
In contrast, clinical-phase work currently generates around 15% of Charles River’s bioanalysis revenue, while biologics and complex modalities account for roughly 75%.
CRL plans to finance the transaction through its credit facility and existing cash reserves, reporting the acquired operations under its Discovery and Safety Assessment segment.
Subject to regulatory clearances, approval from Tigermed and Frontage shareholders, and sanction by the Grand Court of the Cayman Islands, the deal is expected to close in the first half of 2027.
Last month, CRL collaborated with Magellan Stem Cells to advance the development and clinical progress of Magellan’s regenerative medicine candidate, Zelestrocel.
