Charles River: 2016 to be 'robust year'
“Charles River is off to a great start in 2016, with a 12.4% constant-currency revenue increase over the first quarter of 2015,” Susan Hardy, Corporate Vice President Investor Relations, Charles River, told Outsourcing-Pharma.com.
“Financial results were strong across our business segments, and we believe our performance demonstrates solid execution of our business strategy and our focus on exceptional client service.”
The company recently reported its results for the first quarter of 2016 from continuous operations, which reached $354.9m, an increase of 10.8% from $320.4m in the first quarter of 2016.
According to the report, revenue growth of 12.4% was driven primarily by the Discovery and Safety Assessment and Manufacturing Support segments. Additionally, Research Models and Services revenue also increased.
A series of acquisitions, including Celsis, Oncotest, and Sunrise Farms, also contributed 3.7% to consolidated first-quarter revenue growth, both on a reported basis and in constant currency.
“Our goal is to continue to broaden our unique portfolio with strategic acquisitions and in-house development, in order to increase our capabilities and therapeutic area expertise and enhance the value we provide to clients,” said Hardy.
As a part of this goal, the company completed its acquisition of WIL Research on April 4, 2016. As Outsourcing-Pharma previously reported, Charles River acquired WIL for approximately $585m in cash.
Hardy said that it is a priority to successfully integrate WIL into the company. “We are investing a significant amount of time meeting WIL’s management and continue to be very impressed with their scientific expertise, operational capabilities, and client focus,” she added.
As it looks to grow new business and increase its capabilities and expertise, Charles River will continue to assess opportunities to broaden its early stage portfolio through both strategic acquisitions and in-house development.
“We are very pleased with our portfolio and the expansion of our geographic footprint, which will help us to accommodate the greater demand for our services both in North America, Europe, and Asia,” said Hardy.
As for challenges, she said that the company plans for any that may occur, “but are confident that we will meet those challenges while maintaining a focus on executing our strategy.”
Garen Sarafian, VP Healthcare Technology & Distribution, Citi Research, commented CRL will look to pay down debt over the next 18 months. “However, the company is also assessing opportunities for strategic acquisitions in 2016, where we view assets in early discovery as likely some of the most desirable,” he added.
According to Hardy, the company is optimistic about future growth, as it sees a strong demand for its product portfolio, expanding strategic relationships’ potential, and continuing gains from efficiency initiatives.
She explained, “We expect 2016 to be a robust year for revenue growth because of the strength of demand, combined with our enhanced strategies for partnering with clients.”
