Charles River Laboratories Strengthens Strategic Focus, Efficiency, And Shareholder Value

Charles River Laboratories International, Inc. announced the results of a comprehensive strategic review by its Board of Directors, reaffirming confidence in the company’s direction and long-term growth strategy. The Board emphasized continued investment in Charles River’s core scientific capabilities, divestment of non-core or underperforming assets, operational efficiency improvements, and disciplined capital allocation as key drivers for enhancing shareholder value.

James C. Foster, Chair, President and Chief Executive Officer of Charles River Laboratories said, “I would like to thank our Board for the progress that has been made thus far on this thorough and collaborative review process. The SPCAC committee will continue to evaluate a wide range of value-creation options to ensure the best strategic path forward for the Company. We are executing a focused plan to enhance long-term value by building upon the core strengths of our unique portfolio that spans basic research, early-stage drug development, and manufacturing solutions. The actions outlined today will better position us to drive meaningful earnings growth and further strengthen the Company to benefit both our shareholders and our clients. Through these actions, we are confident that our long-standing focus on advancing scientific innovation and driving greater efficiency in our clients' drug development programs will lead to a long runway of future growth opportunities and will further reinforce our competitive position in the marketplace.”

The company plans to strengthen its portfolio by focusing investments on its core competencies,  bioanalysis, in vitro and new approach methodologies (NAMs), and other innovative scientific services, through targeted acquisitions, partnerships, and internal development. At the same time, Charles River intends to divest select non-core businesses, which represent approximately 7% of its projected 2025 revenue, in order to concentrate on higher-margin growth areas. These divestitures are expected to contribute at least $0.30 per share to annual non-GAAP earnings before any reinvestment of proceeds.

To further boost financial performance, Charles River is advancing restructuring and efficiency programs expected to yield approximately $225 million in annualized cost savings by 2026, with an additional $70 million anticipated from new process and procurement initiatives. Reinforcing its commitment to disciplined capital deployment, the Board has authorized a new $1 billion stock repurchase program to replace the prior authorization. These steps, initiated under the Strategic Planning and Capital Allocation Committee’s review, highlight the company’s renewed focus on operational excellence, scientific leadership, and long-term value creation.