background image
TB Alliance and AstraZeneca
form research collaboration
to fight tuberculosis
By Jeffrey Bouley
BANGALORE, India--
The 2010 BIO International
Convention served as the backdrop May 3
for the Global Alliance for TB Drug
Development (TB Alliance) and AstraZeneca
(AZ) to announce that they have entered into
a research collaboration agreement to
accelerate the discovery, development
sanofi conTinued on pAge 27
outsourcing
under the microscope
Charles River Laboratories' $1.6 billion acquisition of
WuXi PharmaTech is just the latest large-figure acquisition
in the growing contract research space. The view of the
contract research organization landscape has changed
drastically over the last year or so, with a string of mergers
and acquisitions resulting in the formation of new
collaborations, new companies and allegiances that
have reshaped the market. In this story, the second in
a multi-part series, we take an in-depth look at recent
mergers and acquisitions and the impact they have had
on the CRO industry--and potentially, your business.
We'll also examine the effect this trend has had on the
pharma/biotech job market.
see page 34
June 2010 Volume 6, numBer 6
www.drugdiscoverynews.com
finAnce.........................................................3
mArkeTs .......................................................4
ediToriAl/commenTAry .............................10
new producTs ...........................................37
fAcTs & figures .........................................38
wh
A
T
's inside
instruments & informatics
12
gloBal news
6
diagnostics
16
omics & systems Biology
20
research & development
24
contract research services
29
special report
inside this issue
charles river laboratories
acquires wuXi pharmaTech
for $1.6 billion, creating
cro with services
from early-stage drug
development to clinical trials
By amy swinderman
SHANGHAI, China--
In a deal the companies
say "revolutionizes the contract research
landscape"--and one thought to be among
the largest inbound M&A transactions in
China--Charles River Laboratories
International Inc. (CRL) will combine with
WuXi PharmaTech in a cash-and-stock
transaction valued at nearly $1.6 billion.
By bringing CRL, a leading global pro-
vider of preclinical drug development ser-
vices, and WuXi, an outsourcing company
with expertise in discovery chemistry,
under one roof, the companies say they are
creating "the only global contract research
organization (CRO) to offer fully integrat-
ed research and drug development ser-
vices from molecule creation to first-in-
human testing."
Under the terms of the agreement,
which was announced last month after
unanimous approval by both companies'
boards of directors, CRL will pay a
total of $21.25 for each
American depositary
share of WuXi, of which
$10 will be in CRL com-
mon stock and $11.25 will
be in cash. CRL says it
will finance the cash por-
tion of the transaction
through balance sheet
cash on hand and one or
more sources of new debt
financing. The Wilming-
ton, Mass.-based com-
pany has received a
financing commitment
for a $1.25 billion credit
facility from J.P. Morgan
Chase and Bank of America Merrill Lynch.
CRL says it expects to see approximate-
ly $20 million in pre-tax cost and consoli-
dation savings on an annualized basis,
beginning in 2011, and the transaction is
expected to be neutral to slightly accretive
From molecule to market
No gain without pain
sanofi-aventis, Glenmark sign
global agreement aimed at
treating chronic pain
By lori lesko
PARIS--
Global pharmaceutical company sanofi-aventis
has joined hands with Glenmark Pharmaceutical Ltd.
India in a multimillion-dollar license agreement tar-
geted at developing and commercializing a new chron-
ic pain treatment for osteoarthritic and diabetic neuro-
pathic pain. The centerpiece of the deal is a molecule
called GRC 15300, in the early stage of human trials.
Marc Cluzel, executive vice president of research
and development at sanofi-aventis, says GRC 15300
"brings an innovative approach to sanofi-aventis'
pain portfolio, which we believe may have promise to
Striking from two
sides ... or more
Founded in 2000, WuXi PharmaTech, an outsourcing company with
expertise in discovery chemistry, serves the world's top 20 large
pharmas and biotechs as well as smaller, virtual companies. WuXi has
nearly 4,200 employees, most of whom are based in China, and some
based in the United States.
sanofi-aventis' agreement with Glenmark
Pharmaceutical Ltd. India, which could
be worth more than $300 million, marks
the French pharma's first partnership with
an Indian company in the pharmaceutical
research arena.
The Global Alliance for TB Drug Development,
commonly known as the TB Alliance, and
AstraZeneca will each contribute promising
tuberculosis drug discovery projects into a joint
portfolio that will be co-developed by both parties.
crl conTinued on pAge 33
On the right path
for MDx growth
GoInG WITh
The FLoW
Thermo Fisher Scientific
acquires Proxeon, a
proteomics workflow
solution provider
see page 20
tB conTinued on pAge 8
ExonHit acquires
RedPath Integrated
Pathology to create
`molecular diagnostic
powerhouse'
see page 16