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WILMINGTON, Mass. - Charles River Laboratories International, Inc. (NYSE: CRL), a $8.7 billion market cap company that has seen its stock surge over 10% in the past week, has entered into an agreement with Singapore General Hospital (SGH) to provide master cell banking and next-generation sequencing (NGS) services, crucial for the development of allogeneic chimeric antigen receptor (CAR) T-cells derived from cord blood. These cells are intended for use in cancer treatment, addressing a significant global health challenge. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, suggesting potential upside for investors interested in the biotechnology sector.
Under the terms of the agreement, SGH will utilize Charles River’s Current Good Manufacturing Practice (CGMP)-compliant services for the production of master cell banks (MCB), a key starting material for the manufacture of SGH’s cord blood-derived allogeneic CAR T-cells. Additionally, SGH will have access to Charles River’s NGS-based testing services for cell line characterization, which are essential for the upcoming Phase I clinical trials. With annual revenue of $4.05 billion and a healthy EBITDA of $907.6 million, Charles River demonstrates strong operational capabilities to support such strategic partnerships.
Next-generation sequencing is a transformative technology that enhances the characterization and testing of advanced therapeutics, ensuring the delivery of high-quality products to patients. NGS offers advantages in terms of high throughput, scalability, and speed, making it a superior alternative to traditional animal-based testing methods for detecting viral contaminations in cell banks.
Kerstin Dolph, Corporate Senior Vice President, Global Manufacturing at Charles River, expressed the company’s commitment to advancing cancer research through its cell line characterization services and comprehensive NGS testing approach. The partnership with SGH aligns with Charles River’s corporate values and goals, leveraging their decades of experience in the field.
Charles River’s CGMP NGS testing services are designed to accelerate development timelines while maintaining compliance with regulatory requirements for safety and accuracy, as set by the FDA, EMA, and ICH guidelines.
The collaboration between Charles River and SGH represents a step forward in the development of novel cancer therapies and underscores the ongoing efforts to meet the healthcare needs of patients worldwide. This partnership is based on a press release statement from Charles River Laboratories International, Inc. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, revealing additional valuable metrics and growth prospects for Charles River Laboratories among 1,400+ top US stocks. InvestingPro subscribers also gain access to 6 more exclusive ProTips about CRL’s financial outlook and market position.
In other recent news, Charles River Laboratories reported its fourth-quarter 2024 earnings, which exceeded analyst expectations with an earnings per share (EPS) of $2.66, surpassing the forecast of $2.54. Revenue also surpassed projections, reaching $1 billion compared to the anticipated $985.18 million. Evercore ISI revised the price target for Charles River Laboratories to $175 from $195, maintaining an "In Line" rating. The firm acknowledged the company’s realistic outlook for 2025 despite ongoing demand constraints. Charles River Laboratories announced operational restructuring expected to save $225 million annually by 2026. Executives at Charles River, including CEO James C. Foster, recently purchased significant amounts of company stock, reflecting confidence in the company’s strategic direction. The company plans to repurchase approximately $350 million in stock to enhance shareholder value.
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