Pharmaceutical research services provider Charles River Laboratories International Inc (NYSE:CRL) announced on Wednesday that it has signed definitive agreements to sell its CDMO and Cell Solutions businesses to GI Partners, and certain European Discovery Services assets to IQVIA Holdings Inc (NYSE:IQV).

In 2025, the CDMO and Cell Solutions businesses generated USD143m in revenue, while the European discovery assets contributed USD144m.

The CDMO sites are located in Tennessee, Maryland, and the UK, and the Cell Solutions site is in California. European divestitures include sites in Cambridge, UK; Freiburg, Germany; Kuopio, Finland; Portishead, UK; and Leiden, Netherlands. Charles River will retain about 40% of its Discovery Services capabilities.

The transaction with IQVIA is valued at approximately USD145m in cash, with potential additional payments of up to USD10m. The CDMO and Cell Solutions sale is primarily for future performance-based payments. Both deals are expected to close in the second quarter of 2026, subject to customary conditions.

Charles River has updated its 2026 guidance to account for the divestitures, projecting a revenue reduction of just over USD200m, a more than 50-basis-point decrease in organic growth, at least 100 basis points of incremental non-GAAP operating margin improvement, and an addition of about USD0.10 to non-GAAP earnings per share for the partial year.