By Owen Tucker-Smith
Shares for Charles River Laboratories slipped after the company said it expects revenue to decline in 2025.
Shares of the Massachusetts-based pharmaceutical company were recently down 6% to $178.50 in morning trading. The stock is about 35% below its 52-week peak of $275.
The company said there is a slowdown in its Discovery and Safety Assessment business, as spending from biopharma clients tightens globally due to restructuring programs and reprioritization efforts.
Charles River also said one of its clients is terminating its commercial agreement with the company, further weighing on revenue.
While the company said it will try to save money through restructuring initiatives, those efforts will not be enough to completely offset the anticipated revenue drop. Charles River expects its adjusted operating margin to fall below its expected 2024 level.
The company is scheduled to present its strategic focus, business developments and trends at the JPMorgan Healthcare Conference later Tuesday. It plans to report earnings in mid-February.
Write to Owen Tucker-Smith at owen.tucker-smith@wsj.com
(END) Dow Jones Newswires
January 14, 2025 11:23 ET (16:23 GMT)
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