Charles River Laboratories is to buy Wuxi PharmaTech for $1.6bn, as it anticipates sharply rising demand for outsourced early-stage research from large pharmaceuticals companies.
US-based Charles River is one of the world's largest research groups developing drugs for clients to test in humans.
The cash and shares acquisition of Wuxi, which develops experimental chemical-based drugs in China and the US, ranks among the top three foreign takeovers of a Chinese company and the largest in China's pharmaceuticals industry, according to Dealogic.
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