Galapagos sells service operations to Charles River for up to 34 million euros

Belgian biotech firm Galapagos (Euronext: GLPG) has signed a definitive agreement to sell the BioFocus and Argenta service division operations to USA-based Charles River Laboratories International (NYSE: CRL) for a total consideration of up to 134 million euros ($185 million). The transaction is subject to customary closing conditions and is expected to close early in the second quarter of 2014.

“We are pleased to sell the Argenta and BioFocus divisions to Charles River, one of the premier life science service providers in the world. These newly acquired capabilities are fully complementary to the services provided by Charles River, and Charles River therefore provides a logical and excellent home for Argenta and BioFocus,” chief executive Onno van de Stolpe commented, adding: “With this transaction, Galapagos transforms from a hybrid drug discovery service and pipeline company into a research and development biotech focusing on developing innovative drugs for unmet medical needs. We have created significant value in building our service activities, and BioFocus and Argenta have greatly contributed to our current pipeline.”

Details of the transaction