CRL · Earnings call · 2026Q2T · Full report

China Early-Stage Market Demand

CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-08-05 · Importance 17 · Surprise 24

Charles River said most biotech work conducted in China is early-stage chemistry and biology, which is no longer part of its portfolio. Western clients remain uncertain and are taking a wait-and-see approach, with limited movement of regulated work to China or back to Western providers. Management said Western-facing Chinese CRO pricing remains below Western pricing but has moderated closer to Western levels, while pricing for Chinese biotech and pharmaceutical customers remains considerably lower. The company has had frequent client discussions about potentially relocating work but has not seen major action yet.

Key facts

• CHARLES RIVER LABORATORIES INTERNATIONAL, INC. is not seeing early-stage work returning to China in its proposals and is not doing that work.