Charles River Laboratories International Inc. (NYSE:CRL) stock is trading lower on Wednesday after the company released second-quarter 2025 earnings.
The life science tools company reported:
Last year, animal rights group PETA urged securities regulators to investigate Charles River Laboratories for allegedly misleading investors about its sales and purchases of long-tailed macaques, widely used in pharmaceutical research. The company faced accusations of importing thousands of non-human primates illegally and sourcing some from firms linked to an international smuggling ring, as well as falsely labeling monkeys sold to clients.
However, in July, the U.S. Fish and Wildlife Service cleared the company's shipments from late 2022 and early 2023 as legal, and the U.S. Department of Justice recently informed Charles River that both the grand jury and civil investigations into these shipments have been closed.
The company expects 2025 revenue to decline between (2.5)% and (0.5)% compared to the prior range of 5.5%-3.5% on a reported basis and organically down by 3%-1% (4.5% and 2.5% prior).
Charles River raised its fiscal year 2025 adjusted earnings from $9.30-$9.80 to $9.90-$10.30 compared to the consensus estimate of $9.60.
Charles River stated that the effects of government funding reductions, including at the U.S. National Institutes of Health (NIH), have been minimal.
It expects that the loss of commercial CDMO revenue will reduce the growth rate of manufacturing solutions by less than 500 basis points in 2025.
The company states that the biotech environment is stable; however, when combined with smaller biotech companies, it remains more cash-constrained, partly due to the funding slowdown.
Mid-sized biotechs are performing better; many can support their R&D programs without external funding.
The company has not observed a significant impact on client spending patterns resulting from tariffs or concerns about drug pricing.
Price Action: CRL stock is down 4.82% at $159.42 at the last check on Wednesday.
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