Charles River Laboratories International, Inc. (CRL) has announced the integration of Akron Bio’s (Akron) Closed System Solutions (CSS) line of liquid cytokines produced under current good manufacturing practices (CGMP) into its Cell Therapy Flex Platform for Process Development. The integration enhances closed system processing, which streamlines operations, minimizes risk and improves process robustness.The latest development is expected to strongly boost Charles River’s Manufacturing segment.Potential CR ...

Johnson & Johnson (JNJ) announced that the FDA has issued a complete response letter (“CRL”) to its biologics license application (“BLA”) seeking approval for the subcutaneous (“SC”) formulation of its EGFR/MET inhibitor, Rybrevant, for EGFR-mutated non-small cell lung cancer (“NSCLC”).Rybrevant is currently approved as an intravenous (IV) formulation as a combination therapy for treating NSCLC across different lines of treatment and various mutations.The BLA is seeking approval for a fixed combination of S ...

Charles River Laboratories International, Inc. (CRL) continues to enhance its portfolio through targeted partnerships and acquisitions, poised to drive growth in the upcoming quarters. The company’s RMS (Research Models and Services) is witnessing broad-based growth in all geographic regions for small research models. Sound financial health also bodes well for the stock.  Meanwhile, volatilities in the biopharma industry remain a challenge for Charles River. Intense rivalry from other industry players adds ...

Have you evaluated the performance of Charles River Laboratories' (CRL) international operations for the quarter ending September 2024? Given the extensive global presence of this medical research equipment and services provider, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial succ ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $1.01 billion, a 1.6% decline on a reported basis and a 2.7% organic decline, driven by lower DSA revenue partially offset by growth in the Manufacturing segment [26] - Operating margin was 19.9%, a 60 basis points decline year-over-year, with improvements in all three business segments but higher unallocated corporate costs impacting the consolidated margin [28] - Earnings per share (EPS) were $2.59, a 4.8% decline from Q3 2023, but exceeded the outlook provided in August due to better-than-expected top-line performance, particularly in the DSA segment [29] - Free cash flow reached a record $213.1 million in Q3 2024, up from $139.5 million in the same period last year, driven by disciplined working capital management and lower capital expenditures [65] Business Segment Performance DSA Segment - DSA revenue was $615.1 million, a 7.4% organic decline, primarily due to lower study volume in both Discovery Services and Safety Assessment businesses [31] - Safety Assessment pricing remained flat year-over-year but is expected to decline slightly in Q4 2024 [32] - The DSA backlog decreased slightly to $2.12 billion at the end of Q3 2024 from $2.16 billion at the end of Q2 2024 [35] - DSA operating margin improved to 27.4%, up 20 basis points year-over-year and 30 basis points sequentially, driven by cost-saving actions [39] RMS Segment - RMS revenue was $197.8 million, a 0.6% organic increase, driven by higher pricing and small model sales volume in China, offset by declines in Research Model Services and Cell Solutions [40] - Small model unit volume declined in North America and Europe due to large pharma restructuring activities and reduced research staff [41] - RMS operating margin increased by 210 basis points to 21%, driven by higher pricing, favorable revenue mix, and cost-saving actions [44] Manufacturing Segment - Manufacturing revenue was $196.9 million, an 11.8% organic increase, driven by strong performance across all businesses, particularly in the CDMO and Biologics Testing segments [45] - The CDMO business saw robust client interest and booking activity, particularly in cell therapy, while Biologics Testing benefited from demand for core testing activities [46][47] - Manufacturing operating margin increased by 420 basis points to 28.7%, driven by higher sales volume across all businesses [51] Market and Client Trends - Revenue from small- and mid-sized biotech clients was stable sequentially, but global biopharmaceutical client revenue declined both sequentially and year-over-year due to tighter budgets and pipeline reprioritization [10][27] - Forward-looking demand indicators for biotech clients improved compared to 2023, but the recovery is expected to be more gradual than anticipated at the beginning of the year [9] - The net book-to-bill ratio for the Safety Assessment business improved to the most favorable levels since Q1 2023, indicating stabilization in demand [33] Strategic Initiatives and Cost Management - The company has implemented restructuring initiatives, including headcount reductions and global footprint optimization, expected to generate $200 million in cumulative annualized cost savings by 2026 [23] - Approximately 15 smaller sites, primarily in the DSA and RMS segments, are being consolidated, with expected annualized net savings of $40 million upon completion in 2026 [21] - The company is focusing on commercial enhancements, including leveraging technology like the Apollo platform and RMS e-commerce initiatives, to improve client experience and gain market share [16] Management Commentary on Market Environment - The biopharmaceutical demand environment remains challenging, with global biopharma clients undergoing restructuring and reprioritization, leading to tighter budgets and reduced spending [10][13] - Management believes the demand environment has stabilized and is not deteriorating further, with forward-looking indicators showing improvement from Q2 levels [11][34] - The company expects current trends, including pricing pressures and gradual recovery in biotech demand, to persist into 2025, impacting year-over-year growth rates [13][74] Capital Allocation and Share Repurchases - The company repurchased 500,000 shares for approximately $100 million in Q3 2024, offsetting annual share count dilution from equity awards [63] - Free cash flow generation and moderating capital intensity have allowed the company to rebalance capital priorities, including modest stock repurchases and debt repayment [24][64] Q&A Session Highlights Biotech Funding Environment - The funding environment for biotech clients has improved compared to 2023, with stable demand indicators, but recovery is expected to be gradual [79] - Interest rate reductions and a more robust IPO market have provided some support, but the overall funding environment remains cautious [78] Large Pharma Demand - Large pharma clients are still undergoing cost-cutting and pipeline reprioritization, but demand trends have stabilized and are not expected to deteriorate further [87][88] - Management expects continued pressure on large pharma demand into 2025, with recovery dependent on client budget finalizations and R&D spending trends [115] DSA Margin Outlook - DSA margins are expected to face pressure in 2025 due to pricing headwinds and the need to offset rising costs with efficiency initiatives [93][94] - The company remains focused on protecting margins through cost-saving actions and footprint optimization [92] Manufacturing Segment Synergies - Over 50% of CDMO clients now utilize Biologics Testing capabilities, demonstrating strong synergies between the two businesses [47][144] - The integration of CDMO and Biologics Testing is expected to continue driving growth and providing a competitive advantage [145] Global Footprint Optimization - The company is consolidating 15 smaller sites, primarily in the DSA and RMS segments, to improve efficiency and reduce overhead costs [21][159] - These optimizations are expected to enhance operating margins and create a more scalable infrastructure for future growth [160]

Charles River Laboratories International, Inc. (CRL) reported third-quarter 2024 adjusted earnings per share (EPS) of $2.59, which declined 4.8% year over year. The figure, however, surpassed the Zacks Consensus Estimate by 6.6%.On a GAAP basis, earnings declined 21.3% year over year to $1.33 per share.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.RevenuesRevenues totaled $1.01 billion, beating the Zacks Consensus Estimate by 3.4%. However, the top line declined 1.6% from the year ...

Charles River Laboratories (CRL) reported $1.01 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 1.6%. EPS of $2.59 for the same period compares to $2.72 a year ago.The reported revenue represents a surprise of +3.33% over the Zacks Consensus Estimate of $977.22 million. With the consensus EPS estimate being $2.43, the EPS surprise was +6.58%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compa ...

Charles River Laboratories (CRL) came out with quarterly earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.43 per share. This compares to earnings of $2.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.58%. A quarter ago, it was expected that this medical research equipment and services provider would post earnings of $2.39 per share when it actually produced earnings of $2.80, delivering a surprise o ...

Exhibit 99.1 NEWS RELEASE CHARLES RIVER LABORATORIES ANNOUNCES THIRD-QUARTER 2024 RESULTS – Third-Quarter Revenue of $1.01 Billion – – Third-Quarter GAAP Earnings per Share of $1.33 and Non-GAAP Earnings per Share of $2.59 – – Updates 2024 Guidance – WILMINGTON, MA, November 6, 2024 – Charles River Laboratories International, Inc. (NYSE: CRL) today reported its results for the third quarter of 2024. For the quarter, revenue was $1.01 billion, a decrease of 1.6% from $1.03 billion in the third quarter of 202 ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Charles River Laboratories (CRL) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 6, 2024, might help the stock move higher if these key numbers ar ...