Chinese CRO GemPharmatech Expands in San Diego as FDA Reevaluates Animal Testing Requirements

The Chinese contract research organization (CRO) GemPharmatech continues to increase its U.S. facilities by building a new center in San Diego which strengthens its market reach within the region. The new site combines laboratories with several genetically engineered mouse models to improve preclinical research support at the company. The company released its announcement as part of its continuing U.S. operational expansion while bringing sophisticated research capabilities closer to customers in America.
The San Diego site is an extension of GemPharmatech’s U.S. headquarters, offering services such as lab space rental, mouse breeding, and in vivo preclinical research support. Since 2023, GemPharmatech has been preparing for this expansion from its headquarters in Nanjing, China, aiming to broaden its market reach in the United States.

Dr. Brandy Wilkinson emphasized in a press release that the new facility enables American customers to immediately benefit from pharmacology services and technical expert support that helps speed up new therapy development. The facility also offers direct access to the world’s largest mouse model library, a key asset for future drug development.
This new facility opened its doors right after the FDA declared that it will eliminate mandatory animal testing needs for new monoclonal antibodies. The FDA’s announcement sparked an industry-wide reassessment, as CROs and their competitors navigate evolving drug testing regulations.
GemPharmatech reaffirmed its commitment to global scientific research through its mouse models while adapting to changing market demands. A company spokesperson said GemPharmatech continues to monitor market trends and invest in the development of alternative testing solutions as needed.
The decision by the FDA has prompted various organizations within the CRO field to start making adjustments. Charles River Laboratories declared its intention to develop innovative solutions such as virtual control groups and artificial intelligence technologies for decreasing animal utilization during research activities. The company made public in April 2024 its broader initiative to add human organoids along with computer simulations to new alternative methods (NAMs) within its drug development workflows. Stock performance at Charles River took a substantial loss amounting to 27% following the FDA’s statement based on Macquarie Equity Research analysis.
Although Charles River did not provide insight into its stock movement a company representative confirmed that NAMs present possibilities yet they need extensive validation to adequately substitute animal models throughout drug development.

Emulate CEO Jim Corbett predicts that Contract Research Organizations will eventually embrace non-animal testing solutions because of rising market demand. The FDA made a choice that he saw as motivating the pharmaceutical industry to embrace new technologies because he predicted supply and demand forces would lead to inevitable technological changes..