The Massachusetts-based laboratory services group said Cognate will expand its scientific capabilities into the emerging, high-growth cell and gene therapy CDMO sector, establishing a comprehensive solution from discovery and non-clinical development through CGMP manufacturing in advanced drug modalities.

“Because of the synergistic fit with Charles River, the market growth potential and the emerging role of advanced drug modalities as treatments for oncology and rare disease, we believe Cognate will meaningfully enhance our long-term revenue and earnings growth potential,” said Charles River’s chairman, president and CEO James Foster.

Headquartered in Memphis, Tennessee, USA, Cognate has operations in North America (Memphis and Baltimore, Maryland) and Europe (Keele, UK, and Matfors, Sweden) with more than 500 employees.

Its primary area of expertise is in CGMP cell therapy manufacturing, which processes a variety of cellular products and other starting materials to develop and produce allogeneic (donor-derived) and autologous (patient-derived) cell therapies.

Cognate also produces plasmid DNA, which is a foundational tool used in the development of gene-modified cell therapies and gene therapies, as well as other CDMO inputs.

According to Charles River, the addressable market for Cognate’s CDMO services is estimated at roughly $1.5 billion and expected to grow at least 25% per year over the next five years. The laboratory services group added that with a significant portion of cell and gene therapy programs in the preclinical phase, demand for Cognate’s services is expected to intensify as more of these programs progress into late-stage development and commercialization.

Cognate is expected to generate annual revenues of approximately $140 million in 2021. The company will be part of Charles River’s Manufacturing Support reporting segment.

Author: Elaine Burridge, Freelance Journalist