CRL Stock to Gain From the Global Biotech Incubator Program Launch

Charles River Laboratories International, Inc. CRL has launched the Charles River Incubator Program (“CIP”) via its Global Innovation Center of Excellence (CoE). The initiative is designed to support early-stage biotechnology companies in the discovery, development and phase-appropriate manufacturing of advanced therapies.The latest development is expected to bolster the company’s Manufacturing Solutions segment. With this program, Charles River demonstrates a continued commitment to the global biotechnology industry by providing knowledge, connectivity and priority access to its portfolio.Potential Trend of CRL Stock Following the NewsAfter the announcement yesterday, Charles River shares fell by 3.9%, closing at $191.54. On a promising note, the Manufacturing segment continues to perform strongly across each of its businesses. The CDMO business is seeing strong client interest and booking activity within cell therapy, while the Biologics Testing business is thriving with high demand for core testing activities. The Microbial Solutions business also benefits from the demand for Endosafe testing consumables and improved instrument placements. We expect the latest development to positively boost the market sentiment toward CRL stock.Charles River has a market capitalization of $10.19 billion. The company’s earnings yield of 5.1% compares favorably with the industry’s 3.15% yield. In the trailing four quarters, it delivered an average earnings surprise of 9.35%.  More on CRL’s New ProgramCharles River’s established global Cell and Gene Therapy (CGT) Accelerator Program (CAP) accelerates advanced therapy developers 18-24 months from IND (Investigational New Drug) or CTA (Clinical Trial Application) submission. Building on its success, the CIP focuses on nurturing innovative start-up and early-stage biotechnology companies. The program’s goal is to form a strong foundation for commercial viability as its participants gain momentum with the goal of imparting cost-effective, consultative regulatory and quality expertise, personnel training initiatives, and enabling access to laboratory space and equipment.Image Source: Zacks Investment ResearchThe Global Innovation CoE brings together a cross-functional team of scientific, regulatory and manufacturing experts in drug discovery, safety assessment, research models, clinical to commercial contract development, and manufacturing and microbial solutions. Based out of Charles River’s CDMO (contract development and manufacturing organization) CoE located in the Alderley Park campus, UK, the Global Innovation CoE is geared to foster and accelerate life sciences innovation, with enhanced access to life sciences and biotechnology experts.Industry Prospects Favoring Charles RiverPer a research report, the global biotechnology market was valued at $1.55 trillion in 2023 and is projected to grow at a compound annual rate of 13.96% through 2030. The market is driven by strong government support through initiatives aimed at the modernization of the regulatory framework, improvements in approval processes & reimbursement policies, as well as standardization of clinical studies.More Developments in Charles River’s Manufacturing UnitIn October 2024, the company announced the launch of the Retrogenix Non-Human Protein Library, helping biopharmaceutical clients assess off-target binding to a non-human proteome to de-risk in vivo studies and aid in non-human species selection. The early insights are said to be generated without the lead time and expense associated with ex vivo tissue or in vivo research model studies, allowing clients to progress to safety studies, clinical trials and IND applications with highly relevant data.CRL Stock Price PerformanceIn the past three months, Charles River shares have risen 1.8% against the industry’s 8.7% fall.CRL’s Zacks Rank and Key PicksCharles River carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are Penumbra PEN, Haemonetics HAE and Phibro Animal Health PAHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Penumbra shares have risen 8.8% in the past year. Estimates for the company’s 2024 earnings per share have jumped 0.7% to $2.81 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have decreased 3.1% in the past year against the industry’s growth of 21.1%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.Estimates for Phibro Animal Health’s fiscal 2025 earnings per share have increased 2.5% to $1.61 in the past 30 days. Shares of the company have surged 106.1% in the past year compared with the industry’s 21% rise. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%. In the last reported quarter, it delivered an earnings surprise of 52.17%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Haemonetics Corporation (HAE): Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report Penumbra, Inc. 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