February 28, 2022
Revenue from Charles River Laboratories’ manufacturing business increased significantly in 2021 thanks to increased demand and the positive impact of acquisitions.
Charles River Laboratories’ (CRL’s) revenue for 2021 increased 21.1% to $3.54 billion. Its discovery and safety assessment unit made the biggest contribution, bringing in $2.11 billion which is 14.7% more than in 2020. Revenue from research models and services climbed 20.9% to $690.4 million.
However, in terms of growth, CRL’s manufacturing and related services business gained the most ground. Revenue from manufacturing increased 44.1% to $742.5 million.
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The firm attributed a large proportion of the gains to the impact of recent acquisitions, explaining that Cognate BioServices – which it bought last February – and Vigene Biosciences – bought in May – contributed 27.8% to manufacturing revenue growth.
CRL also said its manufacturing business saw higher demand for biologics testing, microbial solutions and avian vaccine production in 2021.
And CRL predicted that its manufacturing acquisitions will drive further growth in 2022.
CFO David Smith told analysts “We also expect a mid-teens organic revenue growth in the manufacturing segment, reflecting a slight moderation in the microbial solutions and biologics growth rates, along with the incremental contribution from the high growth cell and gene therapy CDMO business once we anniversary the Cognate and Vigene acquisitions.”
This was echoed by Foster said, “We’re very pleased with the mid-teens growth rate forecast for 2022 and expect the Manufacturing segment will achieve its 2024 target of approaching 20% growth once the benefit of the high growth CDMO businesses fully reflected in the organic growth rate and the CDMO scale continues to increase.”
Foster also outlined plans for manufacturing capacity expansion.
He told analysts “The strength of demand for CDMO services necessitates our continued investment and capacity to ensure we have available space to serve our clients and to build upon our extensive portfolio of manufacturing services.”
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