Charles River Laboratories at Morgan Stanley conference: growth inflection seen

On September 14, 2026, Charles River Laboratories presented its updated business strategy at the Morgan Stanley 24th Annual Global Healthcare Conference. CEO Birgit and CFO Glenn highlighted a period of stabilization and growth for the company, following a long slowdown. The company's Drug Safety Assessment (DSA) unit showed the most significant improvement, with a book-to-bill ratio of 1.19 in the second quarter, the highest in nearly four years.

DSA revenue returned to modest growth after a few years of decline, and management expects this growth to accelerate in the second half of 2026.

Research Models and Services (RMS) remained mixed, with guidance predicting a low single-digit decline for the year. However, manufacturing margins were in the upper 30s in the second quarter and are expected to reach 40% in the second half of the year. Microbial Solutions delivered high single-digit organic growth, and the company generated more than $500 million in annual free cash flow in the first half of the year.

The company has reshaped its portfolio through acquisitions in non-human primates and sequencing technology, and divestitures of lower-margin assets. About $800 million has been deployed this year, with more than $800 million still available on the credit facility. Financial performance is expected to start improving in the second half of 2026. Management emphasized the importance of the company's breadth, scientific depth, and global footprint, and noted that proposal rates and bookings are rising.