Charles River Laboratories Shares Drop 6% as Company Predicts Revenue Decline for 2025

Vijay Singh
2 Min Read

Shares of Charles River Laboratories (CRL), a leading Massachusetts-based pharmaceutical services company, dropped 6% in morning trading, falling to $178.50. The decline follows the company’s announcement that it expects a revenue downturn in 2025, raising concerns among investors about its near-term financial outlook.

The company, which provides services to the pharmaceutical and biotechnology industries, cited a slowdown in its Discovery and Safety Assessment business. A tightening of spending from biopharma clients, driven by global restructuring programs and reprioritization efforts, is contributing to the expected revenue decline. Additionally, Charles River confirmed that one of its major clients is terminating its commercial agreement, further impacting anticipated revenue for the year.

As part of its efforts to mitigate the financial impact, Charles River stated that it is implementing restructuring initiatives aimed at cost savings. However, these measures are not expected to fully offset the revenue decline. The company also forecasted that its adjusted operating margin will fall below its expected 2024 level.

The news of the revenue decline comes at a time when Charles River’s stock is already trading about 35% lower than its 52-week peak of $275. Investors are closely monitoring the company’s performance, especially as it faces these challenges in a rapidly changing pharmaceutical and biopharma landscape.

Charles River Laboratories is set to discuss its strategic focus, business developments, and trends at the JPMorgan Healthcare Conference later today. The company is also scheduled to report its earnings in mid-February, which will provide further insights into its financial position and outlook for the coming year.

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