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WILMINGTON, Mass. - Charles River Laboratories International, Inc. (NYSE:CRL), a global contract research organization with a market capitalization of $8.4 billion and an EBITDA of $956 million in the last twelve months, announced Wednesday the formation of a global Scientific Advisory Board focused on advancing New Approach Methodologies (NAMs) that could reduce reliance on animal testing in therapeutic development. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 1.36 and an Altman Z-Score of 3.42, indicating strong financial stability.
The board will be led by Dr. Namandjé N. Bumpus, who previously served as Chief Scientist and Principal Deputy Commissioner at the Food and Drug Administration until December 2024. Prior to her FDA role, Dr. Bumpus was a Professor and Director of the Department of Pharmacology and Molecular Sciences at Johns Hopkins University School of Medicine.
The initiative aims to accelerate the development and regulatory validation of non-clinical tools that enhance predictability of efficacy and safety in therapeutic and chemical substance development. These methodologies include in vitro models such as human cell-based assays and organ-on-a-chip systems, in silico techniques utilizing computational toxicology and machine learning, and in chemico methods that assess chemical reactivity.
"Our industry is at an inflection point where science and technology are intersecting to accelerate the pace of drug discovery and development," said Birgit Girshick, Corporate Executive Vice President and Chief Operating Officer at Charles River, according to the company’s press release. The company’s strategic initiatives come amid significant market momentum, with InvestingPro data showing a remarkable 60.6% price return over the past six months, despite broader market volatility.
Charles River has already implemented several NAMs in its drug discovery and development programs, including Endosafe Trillium, a recombinant bacterial endotoxin test, in vitro skin sensitization assays, virtual control groups, and next-generation sequencing for pathogen testing.
The company stated that patient safety and regulatory acceptance will determine the pace of industry adoption of these alternative methodologies. The Scientific Advisory Board includes Charles River’s experts in animal welfare, science, technology, operations, and regulatory affairs.
The announcement aligns with Charles River’s ongoing efforts to minimize animal use in research through its 3Rs approach of Replacement, Refinement, and Reduction.
In other recent news, Charles River Laboratories reported its second-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $3.12 against the forecasted $2.50, representing a 24.8% surprise. The company’s revenue also exceeded predictions, reaching $1.03 billion compared to the anticipated $984.86 million. In terms of analyst activity, TD Cowen maintained its Buy rating on Charles River Laboratories and raised its price target to $205.00. Meanwhile, William Blair upgraded the company’s stock rating from Market Perform to Outperform, citing a more favorable environment for pharmaceutical outsourcing. Jefferies also upgraded the stock from Hold to Buy, increasing its price target to $195.00 due to improved Discovery and Safety Assessment (DSA) bookings. These developments indicate a positive outlook from analysts despite some concerns about future revenue growth.
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