Charles River And WuXi File Revised Investor Presentation
Charles River Laboratories International, Inc.(NYSE: CRL) and WuXi PharmaTech (NYSE:WX) today announced that they have issued an updated investor presentation in connection with Charles River's proposed acquisition of WuXi. The additional materials include the companies' expectation that the combined company will generate at least $75 million to $100 million of revenue synergies on an annual basis by 2013. Investors may access the full presentation at Charles River's website at www.criver.com/specialwuxi2010.
"We are confident that our proposed combination with WuXi will create not only the world's premier early-stage contract research organization (CRO), but also significant additional shareholder value," stated Charles River Chairman, President and Chief Executive Officer James C. Foster. "Among the many metrics that support this view are the estimated revenue synergies we expect to generate from the combination," he said.
Mr. Foster continued, "This transaction will create the first fully integrated global early-stage CRO, uniquely positioned to address our pharmaceutical and biotechnology clients' rapidly changing needs and desire for a broader range of global outsourced solutions. Combining Charles River and WuXi will provide a more efficient and cost-effective integrated platform of essential products and services - from molecule creation to first-in-human testing - on a global basis. It is therefore not surprising that even at this early stage, in meeting with our respective existing clients, we are receiving overwhelming support."
Examples of client responses include the following statements:
From a senior vice president and head of worldwide research of a top-five global pharmaceutical company, "We have great respect for and work with both organizations. When combined with WuXi, Charles River will be able to provide a unique set of end-to-end services which we believe will help accelerate our drug development process. We look forward to working in a more holistic fashion with the combined entity."
From the senior vice president of research and early development of another top-five pharmaceutical company, "Charles River-WuXi's unique early-stage portfolio of products and services provides a transformational opportunity for the drug development industry. The availability of a new CRO paradigm will allow companies like us to explore innovative strategic relationships and R&D business models which could dramatically change the R&D productivity equation. We very much look forward to having a company like Charles River-WuXi in the marketplace and to working with the new organization."
The executive vice president and chief scientific officer of a first-tier biotechnology company said, "The combination of these two companies is the most visionary and promising approach to drug development I've seen in this field in the last three decades. To be able to access the power of your integrated drug discovery and early development platform offers us tremendous opportunities to speed affordable and transformational medicine to patients."
"These remarks, typical of the many comments we have received from other clients, validate our belief that the proposed combination will provide significant benefits to our clients, as well as to our shareholders - including through increased revenue growth. Indeed, as a result of this preliminary client response, we now feel more comfortable in providing investors with greater transparency and quantification of the expected top-line synergies we can generate," Mr. Foster concluded.
Both Charles River and WuXi urge investors to support the transaction by taking the time to vote promptly by completing and returning the proxy card previously provided or by submitting proxies by telephone or through the Internet. Charles River shareholders with questions about the combination or how to vote their shares may contact the company's proxy solicitor, Innisfree M&A Incorporated, toll-free at 888-750-5834. WuXi shareholders with questions about the combination or how to vote their shares may contact the company's proxy solicitor, MacKenzie Partners Inc., toll-free at 800-322-2885.