Charles River Laboratories (CRL) TD Cowen 46th Annual Health Care Conference summary

Leadership transition and strategic vision

• Incoming CEO emphasized gratitude for predecessor's mentorship and highlighted the company's industry leadership, working on over 80% of FDA-approved drugs.

• Recent strategic review led to initiatives including acquisitions and divestitures, aiming to enhance supply chain integration and expand alternative methods for next-generation sequencing.

• Ongoing focus on M&A, portfolio optimization, and geographic evaluation to drive shareholder value and competitiveness.

• Continued digital transformation has removed over $300 million in costs, with further modernization planned.

Market trends and funding environment

• Biotech proposal and bookings have improved since summer, with pharma clients accelerating clinical pipelines.

• Funding is easing, with positive sentiment among clients and a rebound in IPO activity.

• Net book-to-bill above one in Q4 supports revenue growth for the second half of the year, with stable trends needed for sustained growth.

• Academic and government segments remain stable but with slower growth due to recent uncertainties.

Regulatory and macro environment

• FDA disruptions and NIH funding uncertainties have had minimal impact, with most clients adapting and business returning to stability.

• Academic segment experienced slower growth but remains fundamentally stable.