Benzinga | May 17, 2021 01:17PM EDT

Charles River Acquires Viral Vector Player For $350M

* Contract researcher Charles River Laboratories International Inc (NYSE: CRL) will dole out $292.5 million for gene therapy CDMO Vigene Biosciences with the possibility for an additional $57.5 million in performance-based payments.

* The deal will close by early Q3.

* Vigene is expected to generate between $30 million and $35 million in 2021, and Charles River anticipates year-over-year growth of 25% by 2026.

* With the addition of Vigene, the Charles River cell and gene therapy portfolio will expand each major CDMO platform: cell therapy, viral vector, and plasmid DNA production, said CEO James Foster.

* Vigene has particular expertise in AAV production, as well as lentivirus. That range will complement Charles River's current end-to-end, gene-modified cell therapy solution.

* Viral vectors are key components used in many gene therapies and reinforce Charles River's growing presence in the field after a spate of recent acquisitions.

* In February, the company had acquired Cognate with capabilities in cellular immunotherapy, immuno-oncology, regenerative medicine, and advanced cell therapy therapeutics.

* In January, Charles River bought antibody discovery company Distributed Bio for up to $104 million.

* Price Action: CRL shares are down 1.74% at $323.37 during the market session on the last check Monday.