WILMINGTON, Mass.–Charles River Laboratories International has agreed to acquire the bioanalysis and drug metabolism and pharmacokinetics (DMPK) operations of Frontage Holdings Corporation for approximately $470 million in cash, expanding its laboratory testing capabilities for pharmaceutical and biotechnology companies.
The agreement includes potential additional payments of up to $75 million based on the future performance of the acquired businesses, bringing the transaction’s total potential value to $545 million.
The acquisition is expected to close during the first half of 2027, subject to shareholder and regulatory approvals and other customary closing conditions.
The transaction will add two laboratory facilities in Exton, Pennsylvania, encompassing approximately 150,000 square feet and employing about 340 people. The operations include a laboratory certified under the Clinical Laboratory Improvement Amendments (CLIA) and provide testing services supporting the development of small-molecule drugs, biologics and other advanced therapies.
Charles River said the acquisition will strengthen its position in clinical bioanalysis, an area of drug development focused on measuring drug concentrations, metabolites and biomarkers in biological samples to evaluate how experimental treatments behave in the body.
“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 programs 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,” said Birgit Girshick, Chief Executive Officer of Charles River Laboratories.
The acquisition is part of Charles River’s Pathway to Purpose strategy, which includes expanding its scientific capabilities and providing more integrated services throughout the drug development process.
Charles River currently derives approximately 15% of its bioanalysis revenue from clinical-phase testing, with much of its existing business focused on preclinical research.
Frontage’s operations are more heavily concentrated in clinical development, with the majority of its bioanalysis revenue in 2025 generated from clinical-stage programs.
Combining the businesses is expected to strengthen Charles River’s ability to support pharmaceutical and biotechnology clients as their drug candidates move from laboratory research into human clinical trials.
The company said the acquisition will also expand its capabilities in drug metabolism and pharmacokinetics, which examine how drugs are absorbed, distributed, metabolized and eliminated from the body.
These services are increasingly important as pharmaceutical developers pursue more complex treatments, including biologics and advanced therapeutic modalities that require specialized testing methods.
Charles River estimates that the global bioanalysis market will expand from approximately $6 billion in 2026 to between $8 billion and $9 billion by 2031, representing annual growth of 6% to 8%.
The company expects demand for bioanalysis services supporting biologics, complex therapies and clinical-stage drug development to grow faster than the broader market.
Biologics and complex modalities currently account for approximately 75% of Charles River’s bioanalysis revenue.
The addition of Frontage’s capabilities is expected to strengthen the company’s existing expertise in those areas while expanding its services for conventional small-molecule drugs.
“This acquisition will advance our Pathway to Purpose strategy by expanding our presence in clinical bioanalysis, strengthening our scientific leadership, and enhancing our ability to serve clients across the drug development lifecycle. Our combined bioanalysis and DMPK offering will provide a more integrated solution that accelerates development timelines and improves continuity from preclinical through clinical testing. The transaction is expected to enhance our growth profile and support long-term value creation for clients and shareholders. We look forward to welcoming Frontage’s talented bioanalysis and DMPK team to the Charles River family,” Girshick said.
The businesses being acquired accounted for approximately 40% of Frontage’s total 2025 revenue of $256.7 million, equivalent to roughly $102.7 million.
Charles River expects the acquired operations to grow at a rate consistent with the broader bioanalysis market over the next five years.
The transaction is expected to have a neutral impact on the company’s adjusted earnings per share in 2027 and contribute positively to adjusted earnings in subsequent years.
Charles River plans to finance the acquisition and related expenses through its existing credit facility and available cash.
Following completion, the acquired businesses will become part of the company’s Discovery and Safety Assessment segment.
The transaction involves a multistep acquisition structure because Frontage is publicly traded on the Hong Kong Stock Exchange.
Charles River has formed a consortium with Hongkong Tigermed Co., a subsidiary of Hangzhou Tigermed Consulting Co., and Frontage Chairman Song Li to take Frontage private.
Under the proposed arrangement, the consortium will acquire Frontage through a court-approved privatization process, after which the company’s operations will be divided into separate subsidiaries.
Charles River will assume sole ownership of the Exton-based bioanalysis and DMPK businesses, while Frontage’s remaining operations will be transferred to Tigermed and Song Li or their affiliates.
The privatization requires several approvals, including votes by Frontage shareholders and Tigermed shareholders, regulatory clearances and approval from the Grand Court of the Cayman Islands.
Tigermed, Song Li and certain trusts under his control have agreed to support the transaction.
J.P. Morgan and CICC are serving as joint financial advisers to the consortium. Davis Polk & Wardwell LLP and Jia Yuan Law Offices are providing legal counsel, while Kirkland & Ellis is advising the joint financial advisers.
The planned acquisition represents a further expansion of Charles River’s drug development services business as pharmaceutical and biotechnology companies increasingly seek laboratory partners capable of supporting research, preclinical testing and clinical development within a single organization.
