** Brokerage Citi Research says North America’s life science sector struggled in the first half of 2025 as new U.S. funding policies and global tariffs hit tools companies hardest, weakening demand and raising uncertainty, with no clear recovery timeline ** Citi views diagnostics companies as more stable, since they rely less on government or big pharma funding, making them safer investments ** Contract Research Organizations (CROs) are seeing more cancellations and tariff risks- Citi ** Citi upgrades Charles River Laboratories CRL.N to “buy” from "neutral," citing conservative earnings cuts and potential activist support ** Downgrades Illumina ILMN.O to “sell” from "neutral," citing risks from China, government funding, and more competition ** Upgrades Hologic HOLX.O to “buy” from "neutral" due to takeover interest and gradual recovery in breast health ** Shares of ILMN down 3.4%, HOLX up 1.9%, CRL up 2.3%

** As of last close, CRL, HOLX, ILMN down 14.2%, ~10%, 25.7% YTD

(Reporting by Padmanabhan Ananthan)

((Padmanabhan.Ananthan@thomsonreuters.com))