Yahoo Finance Charles River (CRL) to Build RightSource Lab With New Pact
Charles River Laboratories International, Inc. CRL recently inked an agreement with Wheeler Bio, a contract development and manufacturing organization (CDMO), for implementing RightSource at Wheeler Bio's current good manufacturing practise (CGMP) biologics production plant in Oklahoma City. The RightSource/Wheeler lab is expected to begin in-process and release testing by the end of the year after becoming operational in the third quarter of 2023.
Through this strategy, Charles River will establish a CGMP testing lab on-site at Wheeler's factory, working closely with Wheeler Bio to do so.
The latest partnership is a significant stepping stone for Charles River and is expected to solidify its foothold in the global CDMO space. The company’s CDMO services are a part of its Biologics Solutions business, a part of the broader Manufacturing Solutions segment.
More on RightSource Laboratory
Charles River's RightSource is a versatile biologics testing facility that makes quick, dependable quality control (QC) more accessible to a wider range of businesses.
The RightSource platform is a cutting-edge insourcing method that provides biotech and biopharmaceutical firms with the panel of on-site assays they deem essential for their biologics manufacturing programmes.
Having a RightSource programme in-house allows clients to take advantage of Charles River's extensive network of regulatory, scientific consultation and biologics testing support. Wheeler's clients will benefit from the program's quick turnaround times and expedited batch release.
Strategic Implications
Per management, the RightSource business model lowers the costs of initial lab setup, protects the client from the regulatory burden of managing a QC lab and enables the use of extensive scientific expertise where clients need it most.
At Wheeler Bio in Oklahoma City, RightSource's presence is much appreciated. By advancing significant therapeutic antibodies and other biologics from discovery to clinical development, this endeavour benefits the company’s growing client base, which is expanding.
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In addition to giving customers access to the platform that is already a part of operations, companies can also give them quick access to other Charles River services like viral clearance studies and cell-line characterization. The objective of cost-effectively accelerating the pace and the efficiency of delivering critical medications to patients around the world is considerably aided by this relationship.
Industry Prospects
Per a report by Fortune Business Insights, the global CDMO market was estimated to be $130.8 billion in 2018 and is anticipated to reach $278.98 billion by 2026 at a CAGR of 10%. Factors like the growing demand for novel therapies and increasing investments in healthcare infrastructure are likely to drive the market.
Given the market potential, the latest tie-up is expected to significantly strengthen Charles River’s global CDMO services portfolio.
Recent Developments
In March 2023, Charles River launched Helper Plasmid. This is designed to secure supply and streamline adeno-associated virus (AAV)-based gene therapy programs from early discovery through commercial manufacturing. The device is currently available in Research Grade (RG), High Quality (HQ) and Good Manufacturing Practice (GMP) grades.
The same month, Charles River launched a cloud-based platform Apollo. This industry-leading platform offers drug developers secure access to study data, milestones, documents, cost estimates, and program planning tools to save time and enhance the client experience. The platform’s current capabilities are designed to support clients with safety assessment and toxicology studies.
Price Performance
In the past one year, shares of the company have dropped 15.8% compared with the industry’s fall of 24.8%.
Zacks Rank and Key Picks
Charles River carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Addus Homecare Corporation ADUS, Merit Medical Systems, Inc. MMSI and Hologic, Inc. HOLX.
The Zacks Consensus Estimate for Addus Homecare’s 2023 earnings indicates a 10.9% year-over-year growth. The Zacks Consensus Estimate for ADUS’s 2023 earnings has moved 0.5% north in the past 30 days.
Addus Homecare has a long-term estimated growth rate of 11.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merit Medical reported a first-quarter 2023 adjusted EPS of 64 cents, beating the Zacks Consensus Estimate by 16.4%. Revenues of $297.6 million surpassed the Zacks Consensus Estimate by 5.9%. It currently carries a Zacks Rank #2.
Merit Medical has a long-term estimated growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%.
Hologic has gained 5% against the industry’s 2.2% decline in the past year.
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