Core Insights - The Madison Small Cap Fund experienced a challenging third quarter in 2025, with a decline of 1.3%, underperforming its benchmarks due to stock selection and a speculative market environment [1] Company Analysis: Charles River Laboratories International, Inc. (NYSE:CRL) - Charles River Laboratories operates in the drug discovery and development outsourcing sector, providing a range of services including drug discovery, non-clinical development, and safety testing [2] - The stock of Charles River Laboratories saw a one-month return of -14.15% and a 52-week decline of 16.72%, closing at $167.64 with a market capitalization of $8.25 billion on November 21, 2025 [2] - The Madison Small Cap Fund initiated a position in Charles River Laboratories in Q3 2025, highlighting its high-quality service offerings and strong operating margins of 20% or more [3] - Despite recent challenges in the drug development space, Charles River Laboratories has shown a 12% compound annual growth rate over the past decade, indicating resilience [3] - The management team is experienced, and the company is expected to achieve earnings power of approximately $15 by 2028, with a conservative intrinsic value estimate of $228 based on a sum of the parts analysis at ~12x EBITDA [3] - Revenue growth is anticipated at 4% from 2024 to 2028, supported by restructuring and cost management efforts [3]

Core Viewpoint - Fortrea has successfully completed a debt tender offer, purchasing $75,743,000 of its outstanding Senior Secured Notes, which is part of its strategy to optimize its capital structure and manage its financial resources effectively [1][2]. Group 1: Debt Tender Offer Details - The tender offer involved repurchasing a portion of the 7.500% Senior Secured Notes due 2030, reducing the outstanding principal from $570,000,000 to $494,257,000 [1]. - The total principal amount of Notes validly tendered exceeded $75,744,000, and the company accepted for purchase $75,743,000 based on a Final Proration Factor of 0.154199 [2]. Group 2: Financial Management and Strategy - The transaction was funded entirely with cash on hand, highlighting the strength of Fortrea's balance sheet and disciplined financial management [2]. - The completion of the tender offer aligns with the company's divestiture of its Fortrea Patient Access and Endpoint Clinical businesses, which was finalized in June 2024 [1]. Group 3: Company Overview - Fortrea is a leading global provider of clinical development solutions, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies to drive healthcare innovation [3]. - The company offers a range of services including phase I-IV clinical trial management and consulting, leveraging over three decades of experience across more than 20 therapeutic areas [3].

Core Viewpoint - Inotiv, Inc. will release its financial results for the fiscal year 2025 on December 3, 2025, and will host a conference call to discuss these results [1]. Company Overview - Inotiv, Inc. is a leading contract research organization that specializes in nonclinical and analytical drug discovery and development services, as well as research models and related products [3]. - The company's focus is on enhancing efficiency, improving data quality, and reducing costs associated with bringing new drugs and medical devices to market [3]. - Inotiv is dedicated to supporting research and development objectives, aiming to help researchers maximize the potential of their projects while contributing to a healthier and safer world [3].

Core Insights - Charles River Laboratories International, Inc. (CRL) is a contract research organization with a market cap of approximately $8 billion, providing drug discovery, non-clinical development, and safety testing services [1] Financial Performance - CRL's stock has underperformed the broader market, declining 13.7% over the past 52 weeks and 12.2% year-to-date, while the S&P 500 Index gained 10.5% over the same period [2] - The company's stock prices dropped 5.7% following the release of its Q3 results, where the topline dipped 49 basis points year-over-year to $1 billion, but exceeded expectations by 2.1% [4] - Adjusted EPS for Q3 declined 6.2% year-over-year to $2.43, surpassing consensus estimates by 4.7% [4] - For the full fiscal 2025, analysts expect CRL to deliver an adjusted EPS of $10.21, down 1.1% year-over-year [5] Analyst Ratings and Price Targets - Among 16 analysts covering CRL, the consensus rating is a "Moderate Buy," with 10 "Strong Buys" and six "Holds" [5] - Morgan Stanley analyst Ricky Goldwasser maintained an "Equal-Weight" rating and raised the price target from $170 to $185, with a mean price target of $192.93 representing a 19% premium to current price levels [7] - The street-high target of $211 suggests a notable 30.2% upside potential [7]

Core Insights - Inotiv, Inc. (NOTV) shares surged over 23% in after-hours trading following the release of preliminary fiscal fourth quarter and full year results for the period ending September 30, 2025 [1] Financial Performance - Q4 2025 revenue is projected to be between $137.5 million and $138.5 million, marking a year-over-year increase of approximately 6% from $130.4 million in Q4 2024 [1][2] - For the full fiscal year 2025, revenue is expected to be between $512.5 million and $513.5 million, reflecting a 4.5% growth compared to $490.7 million in fiscal 2024 [2] - The Discovery and Safety Assessment (DSA) services experienced significant growth, increasing by 60% year-over-year in Q4 [2] Operational Metrics - The company reported a book-to-bill ratio of approximately 1.08x for Q4 and 1.05x for FY2025, with a backlog of $138 million at the end of September 2025 [2] - CEO Robert Leasure Jr. emphasized the company's progress towards financial goals set during the May investor day, highlighting sequential growth in contract awards and enhanced revenue visibility [3] Upcoming Events - Inotiv is scheduled to present at the Jefferies Global Healthcare Conference in London on November 18, 2025, where further updates are anticipated [3] - Final audited results for Q4 and FY2025 will be reported in early December [3] Stock Performance - Over the past year, NOTV shares have traded between $0.65 and $6.48, closing at $0.68 before rising to $0.84 in after-hours trading, reflecting a 23.53% increase [4]

Core Insights - Inotiv, Inc. anticipates fourth quarter 2025 revenue between $137.5 million and $138.5 million, reflecting a year-over-year improvement and aligning with expectations [1][2] - The company expects full year 2025 revenue to be in the range of $512.5 million to $513.5 million [1][6] - The Discovery and Safety Assessment (DSA) services business experienced a 60% growth compared to the same period last year, with a book-to-bill ratio of approximately 1.08x for Q4 FY 2025 [2][6] Preliminary Financial Results - Preliminary expected revenue for Q4 FY 2025 is projected at $137.5 million to $138.5 million [1][6] - Full year 2025 revenue is anticipated to be between $512.5 million and $513.5 million [1][6] - DSA backlog is expected to be approximately $138.0 million as of September 30, 2025, an increase from $129.9 million a year prior [6] Company Presentation - Robert Leasure Jr., President and CEO, will present at the Jefferies Global Healthcare Conference on November 18, 2025, at 11:00 AM GMT [4] - The presentation will be accessible via a live webcast, with a replay available on the company's website [4] Company Overview - Inotiv, Inc. is a leading contract research organization focused on nonclinical and analytical drug discovery and development services [5][7] - The company aims to enhance efficiency, improve data quality, and reduce costs associated with bringing new drugs and medical devices to market [5]

Core Insights - Velocity Clinical Research has appointed Andrew (Drew) Reina as Chief Revenue Officer, effective immediately, to enhance its strategic partnerships and revenue growth [1][2][3] Company Overview - Velocity is a leading integrated site organization for clinical trials, operating over 70 sites with more than 200 investigators, partnering with pharmaceutical and biotechnology companies [7] - The company aims to set the standard for strategic relationships between multisite clinical research corporations, Sponsors, and CRO partners [2] Leadership and Experience - Drew Reina brings over two decades of global clinical research experience, previously serving as Vice President and Head of Sales at Fortrea, where he led a high-performing commercial organization [4][5] - His experience includes overseeing a $1 billion+ global portfolio at PPD's Biopharma segment, focusing on strategic partnerships and alliance management [5] Strategic Goals - As CRO, Drew will drive growth through strategic partnerships with Sponsors and CROs, aligning business development, marketing, and network operations to ensure consistent revenue performance [6] - The organization is positioned to meet the evolving needs of clinical research, helping to accelerate speed to market and alleviate burdens on sites and patients [4][6] Technological Advancements - Velocity operates a technology hub in India, developing innovative systems to leverage expansive site, patient, and historical performance data, enhancing efficiency in clinical trials [8]

Financial Performance & Strategic Review - Charles River's Board supports the company's strategic direction, focusing on strengthening its scientific portfolio, divesting underperforming assets, maximizing financial performance, and maintaining disciplined capital deployment[7] - The company is refining its portfolio by selling certain underperforming or non-core businesses, representing approximately 7% of the estimated 2025 revenue[9] - These divestitures are expected to result in non-GAAP earnings per share accretion of at least $0.30 on an annualized basis once completed, excluding reinvestment benefits or interest expense impacts[9] - A new $1.0 billion stock repurchase authorization was approved by the Board in October, replacing a previous authorization under which $450.7 million in common stock had been repurchased since August 2024[10] 3Q25 Results & Updated Guidance - 3Q25 revenue was $1,004.9 million, a 0.5% decrease compared to $1,009.8 million in 3Q24, with a 1.6% organic revenue decline[13] - The GAAP EPS for 3Q25 was $1.10, a 17.3% decrease from $1.33 in 3Q24, while the non-GAAP EPS was $2.43, a 6.2% decrease from $2.59[15] - The company revised its 2025 revenue growth guidance to a decline of 1.5%-0.5% reported and a decline of 2.5%-1.5% organic[16] - The 2025 non-GAAP EPS estimate is now $10.10-$10.30, which includes a $0.10 guidance improvement at the midpoint[36] Segment Performance & Outlook - DSA (Discovery and Safety Assessment) revenue for 3Q25 was $600.7 million, a 2.3% decrease compared to $615.1 million in 3Q24, with a 3.1% organic revenue decline[17] - RMS (Research Models and Services) revenue for 3Q25 was $213.5 million, a 7.9% increase compared to $197.8 million in 3Q24, with a 6.5% organic revenue growth[25] - Manufacturing revenue for 3Q25 was $190.7 million, a 3.1% decrease compared to $196.9 million in 3Q24, with a 5.1% organic revenue decline[28]

Core Insights - Charles River Laboratories raised its annual profit forecast following strong third-quarter results, driven by stabilized demand in drug discovery and development services [1] Financial Performance - The company reported robust third-quarter results, indicating a positive trend in its financial performance [1] - The updated profit forecast reflects confidence in continued demand for its services [1] Market Demand - Stabilized demand for drug discovery and development services has contributed significantly to the company's performance [1]

Core Insights - Medpace Holdings, Inc. reported a revenue increase of 23.7% for Q3 2025, reaching $659.9 million compared to $533.3 million in Q3 2024 [1] - On a constant currency basis, revenue growth for Q3 2025 was 23.4% compared to the same period in the previous year [1] - The company's backlog as of September 30, 2025, indicates strong future revenue potential [1]