Charles River Laboratories Forecasts Revenue Decline in 2025 Amid CDMO Challenges

Revenue Decline:
Charles River Laboratories expects its 2025 revenue to decline organically at a similar level to 2024 projections, primarily due to challenges in its Contract Development and Manufacturing Organization (CDMO) business and constrained spending from global biopharma clients235.

CDMO Challenges:
The company faces headwinds in its CDMO unit, including the termination of a major client agreement, which has prompted an assessment of asset recoverability for potential impairment4.

Market Impact:
The announcement led to a significant drop in Charles River Laboratories' stock price, with a premarket loss of approximately 12%2.

Long-term Optimism:
Despite current challenges, the company remains optimistic about long-term growth opportunities in its CDMO business, particularly in areas such as cell and gene therapy products4.

Industry Context:
The pharmaceutical and biotechnology sectors are experiencing constrained spending, affecting companies like Charles River Laboratories that provide drug discovery, development, and manufacturing services4.

Sources:

2. https://seekingalpha.com/news/4394894-charles-river-stock-falls-2025-revenue-drop

3. https://www.pharmamanufacturing.com/industry-news/news/55261091/charles-rivers-cdmo-business-challenges-to-impact-revenue-in-2025

4. https://www.tipranks.com/news/company-announcements/charles-river-labs-discusses-2025-financial-outlook

5. https://www.streetinsider.com/Corporate+News/Charles+River+Laboratories+(CRL)+expects+2025+revenue+will+decline+organically+in+a+similar+range+as+estimated+in+2024/24203652.html