Charles River Laboratories (CRL) 46th Annual William Blair Growth Stock Conference summary

Strategic focus, business model, and modernization

• Emphasizes re-strengthening the core, accelerating growth, and translating these into margin expansion and durable shareholder value, with a client-centric approach and the 'Pathway to Purpose' strategy.

• Operates globally with over 18,000 employees, supporting 1,500 INDs annually and serving a $20B+ addressable market.

• Maintains a diversified client base, with no single client representing more than 4% of revenue.

• Completed divestitures of Cell Solutions, CDMO, and certain European Discovery Services sites in May 2026, with future M&A aimed at expanding in vitro testing and Asian market presence.

• Provides a comprehensive portfolio across the drug development continuum, with a leading position in research models and services.

Operational initiatives and portfolio management

• Implements process optimization and cost initiatives, targeting over $100M in incremental savings for 2026 and more than $300M in annualized cost savings.

• Refocused core business via recent divestitures and acquisitions, including a non-human primate farm and PathoQuest.

• Plans to pursue further M&A to expand in vitro testing, geographic reach, and technology capabilities.

• Over 25 acquisitions since 2012, with M&A and strategic partnerships remaining a top priority.

• Strong free cash flow generation supports disciplined investment in growth and shareholder returns.

Technology, innovation, and NAMs

• Invests in AI and digital platforms like Apollo to improve client engagement and operational transparency.

• Committed to new alternative methods (NAMs) to reduce animal use, with a formalized strategy, AMAP initiative, and scientific advisory board.

• Acquired PathoQuest to add next-gen sequencing and in vitro capabilities, reinforcing NAMs leadership.

• AI investments expected to accelerate IND approvals and drug discovery, with nearly 60% of R&D executives anticipating faster development cycles.

• AI seen as a structural tailwind, especially in early-stage drug discovery and target identification.