Charles River (CRL) Extends Gene Therapy Deal With NUS Medicine
Charles River Laboratories International, Inc. CRL recently announced a high-quality (HQ) plasmid DNA development and manufacturing agreement with the National University of Singapore’s (“NUS”) Yong Loo Lin School of Medicine (NUS Medicine). The collaboration provides phase-appropriate plasmid DNA to support the development of engineered stem cells for cancer therapy.
The latest development will strongly boost the company’s Biologics Solutions business under the Manufacturing segment.
News in Detail
The prestigious medical education institution, NUS Medicine, has a world-renowned medical research field of stem cell biology and therapy. The collaboration will utilize Charles River’s market-leading contract development and manufacturing organization expertise in HQ and GMP-compliant plasmid DNA, which serves as a critical starting material for its engineered stem cell cancer therapy and builds on a historic provision of research-grade plasmid.
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Moreover, NUS Medicine will leverage this collaboration to access Charles River’s center of excellence and established manufacturing platform, eXpDNA. The company is excited to extend its partnership with NUS Medicine and contribute to their groundbreaking efforts in advancing engineered stem cells for cancer therapy. With decades of experience in manufacturing and consistently delivering plasmid DNA, both as a vital starting material and finished drug product, Charles River is dedicated to ensuring the success of customers' programs.
In recent years, the company has significantly expanded its cell and gene therapy portfolio to streamline complex supply chains and meet the growing demand for plasmid DNA, viral vector and cell therapy services. Combined with its legacy testing capabilities, Charles River offers an industry-leading “concept to cure” advanced therapeutic solution, helping developers navigate the path to the clinic and beyond.
Industry Prospects
Per a Research report, the global cell and gene therapy market was valued at $15.46 billion in 2022 and is expected to grow at a compound annual growth rate of 18.3% by 2032.
Other Developments in the Manufacturing Segment
In March, Charles River entered into a comprehensive gene therapy manufacturing collaboration with Navega Therapeutics, Inc. — a preclinical stage company developing epigenetic-regulation gene therapies. As part of Charles River’s Cell and Gene Therapy Accelerator Program, Navega will have access to established CDMO capabilities and advisory services to produce an adeno-associated virus (AAV)-based gene therapy, NT-Z001, for Phase I clinical trials.
Earlier in January 2024, the company expanded its robust bacterial endotoxin testing (BET) portfolio with the addition of a new animal-free testing solution. Building on Charles River’s existing Trillium rCR (recombinant cascade reagent) vial product, the Endosafe Trillium rCR cartridge offering enhances testing efficiency and accelerates manufacturing timelines while simultaneously contributing to the company’s 4Rs imperatives (Replacement, Reduction, Refinement and Responsibility) and further progress the client’s goals on sustainability and animal welfare.
Price Performance
In the past six months, Charles River has mostly outperformed its industry. Shares of the company have rallied 36.3% compared with the industry’s rise of 13.8%.
Zacks Rank and Key Picks
Charles River carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Cardinal Health CAH, Stryker SYK and DaVita DVA. While Cardinal Health and Stryker each carry a Zacks Rank #2 (Buy), DaVita sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health’s stock has surged 55.8% in the past year. Earnings estimates for Cardinal Health have risen from $7.28 to $7.29 in fiscal 2024 and from $8.02 to $8.04 in fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it posted an earnings surprise of 16.67%.
Estimates for Stryker’s 2024 earnings per share have remained constant at $11.86 in the past 30 days. Shares of the company have moved 26.2% upward in the past year compared with the industry’s rise of 5.2%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.09%. In the last reported quarter, it delivered an average earnings surprise of 5.81%.
Estimates for DaVita’s 2024 earnings per share have moved up from $8.97 to $9.23 in the past 30 days. Shares of the company have surged 74.7% in the past year compared with the industry’s 22% rise.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.57%. In the last reported quarter, it delivered an average earnings surprise of 22.22%.
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