Pharmaceutical Product Development Inc. (PPDI) sold a research unit to rival Charles River Laboratories International Inc. (CRL) for $46 million to focus on its core service business.

The drug research firm also acquired biotechnology company Magen Biosciences in a deal worth $14.5 million to expand into the dermatology space. The transaction will give PPD access to Magen’s exclusive license to develop and commercialize pre-clinical compounds discovered by Eli Lilly & Co. (LLY).

PPD Chief Executive Fred Eshelman said, "The market is strong and growing for dermatologic products, which generally present fewer development hurdles than other therapeutics and have a more straightforward path to regulatory approval."

The combined effect of the deals would improve PPD’s annual profit by about three cents per share. However, it would lose $19 million in discovery segment revenue for selling its Piedmont Research Center business. Wilmington, Mass.-based Charles River said the buyout of the Piedmont facility would not affect earnings in 2009.