Charles River Forms China Joint Venture

Charles River Laboratories Expands Into China Through a Research and Development Venture

Medical research and services company Charles River Laboratories International Inc. said Friday it has established a drug research and development center in China through a joint venture.

The company said it will be majority owner of the joint venture, formed with Shanghai BioExplorer Co., a Chinese provider of early-stage drug development services.

The venture, which is expected to close at the end of the second quarter, is subject to certain closing conditions, including regulatory approval from the government.

As part of the agreement, Charles River will build a 50,000-square-foot facility in Shanghai. It is expected to open in mid-2008 and provide a wide range of research and development services, including toxicology studies.

"We expect demand for both research models and preclinical services in Asia to significantly increase over the next several years as pharmaceutical and biotechnology companies expand their research efforts in this market, and we intend to play a leading role in this emerging opportunity," James C. Foster, the company's chairman, president and chief executive officer, said in a statement.

Shares of Charles River rose 10 cents to $45.76 in morning trading on the New York Stock Exchange.