Charles River to Buy Frontage’s Bioanalysis and DMPK Units for $470M

• Charles River Laboratories will acquire Frontage Holdings’ bioanalysis and DMPK operations in Exton, Pennsylvania, for about $470 million in cash, plus up to $75 million tied to future performance.
• The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.

Charles River Laboratories said today it has signed definitive agreements to acquire the bioanalysis and DMPK (drug metabolism and pharmacokinetics) businesses of Frontage Holdings Corporation. The assets are in Exton, Pennsylvania. The purchase price is about $470 million in cash, subject to customary closing adjustments. The deal also includes contingent payments of up to $75 million. Closing is expected in the first half of 2027.

The acquired businesses made up about 40% of Frontage’s 2025 revenue of $256.7 million. Charles River expects them to grow at the projected bioanalysis market rate over the next five years. The company expects the deal to be neutral to non-GAAP earnings per share in 2027 and accretive afterward. It will fund the purchase and associated fees from its credit facility and available cash. The businesses will be reported within the Discovery and Safety Assessment segment.

Charles River said the deal expands its clinical bioanalysis presence. About 15% of its bioanalysis revenue now comes from clinical-phase testing, while most of Frontage’s bioanalysis revenue in 2025 came from clinical development. The company projects the bioanalysis market will grow from about $6 billion in 2026 to $8 billion to $9 billion in 2031, or 6% to 8% a year. “The planned acquisition accelerates our strategy to expand our bioanalysis capabilities and enhance our offering in an attractive, high-growth market,” said CEO Birgit Girshick. Biologics and complex modalities account for about 75% of Charles River’s bioanalysis revenue.

The Frontage sites provide bioanalysis, biomarker and DMPK testing for large and small molecules, mainly for clinical programs run by biopharmaceutical clients. The package includes a CLIA-certified central laboratory and two Exton sites covering about 150,000 square feet. About 340 people work at the sites. Charles River also expects synergies with its Manufacturing Solutions segment.

The structure is a three-party deal. Charles River is joining Hongkong Tigermed, Frontage’s controlling shareholder, and Frontage Chairman Dr. Song Li in a consortium. The group will take Frontage private from The Stock Exchange of Hong Kong through a court-sanctioned scheme of arrangement. Frontage’s remaining businesses will then pass to Tigermed and Dr. Li or his affiliates, and Charles River will hold the bioanalysis and DMPK operations. Approvals required include Frontage shareholders, a Tigermed general meeting, regulators and the Grand Court of the Cayman Islands. J.P. Morgan and CICC are financial advisers to the consortium.