Charles River reported second-quarter revenue of $1 billion, a decline of 2.7% from the prior year. Management now anticipates 2026 revenue will decline 3% at the midpoint, an improvement from its previous outlook of negative 4.75%.
Charles River can leverage its scientific expertise and customer relationships as it rolls out non‑animal testing modalities as regulatory standards evolve.
Bears
The FDA’s roadmap to reduce animal testing, combined with advances in AI models, organoids, and cell-based assays, threatens the long-term demand and pricing power of Charles River’s core animal-models business.
Charles River Laboratories was founded in 1947 and is a leading provider of drug discovery and development services. The company’s research model & services segment is the leading provider of animal models for laboratory testing, which breeds and delivers animal research models with specific genetic characteristics for preclinical studies around the world. The discovery & safety assessment segment includes services required to take a drug through the early development process, including discovery services. The manufacturing support segment includes microbial solutions, which provide in vitro (nonanimal) testing products, biologics testing services, and avian vaccine services.