CRL · Earnings call · 2026Q2T · Full report

NHP Supply Sourcing

CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-08-05 · Importance 30 · Surprise 42 · In source text

Demand remains strong for complex modalities and NHP-related studies, reflecting client focus on complex biologics and creating opportunities in both in vivo studies and associated bioanalysis. Charles River controls NHP quality, logistics, shipment timing and capacity through ownership of farms in Mauritius and Cambodia. Management said the company has animals available, can adjust breeding and shipment timing, and is increasingly moving animals from third-party contracts into client studies as those contracts wind down. The integrated supply chain is viewed as a competitive differentiator and a potential source of market-share gains as competitors face tighter near-term capacity.

Key facts

• The lower sourcing costs for Cambodian NHPs will begin to benefit the DSA operating margin in the third quarter, with a more significant contribution in the fourth quarter as use of these models increases on studies.
• The company expects the largest DSA operating margin benefit from lower NHP sourcing costs to be recognized in the fourth quarter rather than the third quarter due to timing of importation, quarantine, acclimation and placement on studies.
• Regulatory required safety assessment studies utilizing NHPs have become a competitive advantage due to more reliable supply after acquisitions of suppliers in Cambodia and Mauritius.
• CHARLES RIVER LABORATORIES INTERNATIONAL, INC. says being in control of nonhuman primate supply chain timing gives clients assurance they can run studies when needed and is deepening client relationships and preferred partnerships.

Impact estimates