Charles River Laboratories Awarded Five-Year, $95.7 Million Contract by the National Institute of Allergy & Infectious Diseases
October 16 2018 - 8:00AM
Business Wire
Charles River Laboratories International, Inc. (NYSE: CRL) today
announced that it was awarded a five-year, $95.7 million contract
by the National Institute of Allergy and Infectious Diseases
(NIAID), which is one of the largest institutes of the National
Institutes of Health (NIH). Under NIAID’s Division of Intramural
Research animal care program, Charles River will manage and provide
staffing for NIAID’s on-site vivarium and related research model
operations. The program is required to ensure the humane care and
use of research models, and the efficient management of NIAID’s
research model operations.
James C. Foster, Chairman, President and Chief Executive Officer
of Charles River, said, “We are very pleased to be awarded this
significant contract by NIAID and look forward to establishing a
collaborative relationship to support NIAID’s critical biomedical
research programs across a range of scientific disciplines. Charles
River’s focus on science, research model care, and productivity
will enable NIAID to streamline its research by delivering
operational and cost efficiencies through strategic insourcing. We
believe that an increasing number of government and academic
institutions, as well as biopharmaceutical clients, understand the
value of utilizing our flexible and efficient staffing
solutions.”
The contract was awarded on April 20, 2018, and commenced on
September 14, 2018. The initial period of the contract runs through
September 13, 2019, and it includes annual renewal options to
extend the contract for an additional four years through September
13, 2023. The Company expects this new contract to generate
incremental revenue of approximately $18 million over the initial
twelve-month period, with modest increases in each of the
subsequent periods. The contract is not expected to have a
meaningful impact on the Company’s 2018 financial results because
its start date was near the end of the third quarter.
Scope of Contracted
Services
Charles River’s Insourcing Solutions business will manage
approximately 200 on-site, Charles River personnel to support the
NIAID contract, ranging from program management, training, quality
control, animal husbandry, veterinary, technical, research, and
administrative support staff. The staff will provide a wide range
of technical and support services required for biomedical research
involving multiple scientific disciplines. The scope of the
contracted services includes veterinary medical care, research
model husbandry, technical support, data management, routine
maintenance, sanitation, transportation, logistics, and
administrative support. The services will be provided on location
at various NIAID and other government facilities. Charles River’s
Insourcing Solutions business offers recruiting, training, staffing
and vivarium management services to academic, government and
biopharmaceutical clients.
This project will be 100% funded with federal funds from the
National Institute of Allergy and Infectious Diseases, National
Institutes of Health, Department of Health and Human Services under
contract no. HHSN272201800014C.
Caution Concerning Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by the use of
words such as “anticipate,” “believe,” “expect,” “intend,” “will,”
“may,” “estimate,” “plan,” “outlook,” and “project,” and other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. Forward
looking statements include statements in this press release
regarding the anticipated revenue and duration of the NIAID
contract, and the services performed under this contract, and the
impact on Charles River’s 2018 financial results. Forward-looking
statements are based on Charles River’s current expectations and
beliefs, and involve a number of risks and uncertainties that are
difficult to predict and that could cause actual results to differ
materially from those stated or implied by the forward-looking
statements. A further description of these risks, uncertainties,
and other matters can be found in the Risk Factors detailed in
Charles River's Annual Report on Form 10-K as filed on February 13,
2018, as well as other filings we make with the Securities and
Exchange Commission. Because forward-looking statements involve
risks and uncertainties, actual results and events may differ
materially from results and events currently expected by Charles
River, and Charles River assumes no obligation and expressly
disclaims any duty to update information contained in this news
release except as required by law.
About Charles River
Charles River provides essential products and services to help
pharmaceutical and biotechnology companies, government agencies and
leading academic institutions around the globe accelerate their
research and drug development efforts. Our dedicated employees are
focused on providing clients with exactly what they need to improve
and expedite the discovery, early-stage development and safe
manufacture of new therapies for the patients who need them. To
learn more about our unique portfolio and breadth of services,
visit www.criver.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20181016005147/en/
Charles River Laboratories International, Inc.Investor
Contacts:Todd Spencer, 781-222-6455Corporate Vice President,
Investor Relationstodd.spencer@crl.comorMedia Contact:Amy
Cianciaruso, 781-222-6168Corporate Vice President, Public
Relationsamy.cianciaruso@crl.com
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