CRIMINAL CAPITALI$M

Charles River Sinks After Getting DOJ Subpoena in Lab-Monkey Probe


Bre Bradham
Wed, February 22, 2023


(Bloomberg) -- Charles River Laboratories International Inc. shares sank by the most in more than 15 months after saying it received a subpoena from the Department of Justice regarding an investigation into the Cambodian supply chain it uses to import monkeys for medical research.

Shares dropped by 10%, the most since November 2021, making the medical-research contractor the second-worst performer in the S&P 500 Index on Wednesday. The supply-chain developments dented the company’s revenue growth guidance for 2023, it said. Its outlook for adjusted earnings per share was also lower than analyst consensus expectations.

“This is not the 2023 outlook we were looking for,” Evercore ISI analyst Elizabeth Anderson wrote in a note to clients.

Concerns around primate supply have intensified since Inotiv Inc. disclosed last year that the US Attorney’s Office for the Southern District of Florida had criminally charged employees of its principal supplier.

The subpoena, which Charles River said it received last week, specifically relates to shipments received by the company from its Cambodian supplier. The Wilmington, Massachusetts company said it has voluntarily suspended planned future shipments.

“Once the Department of Justice concludes its investigation, we believe it will find that any concerns with respect to Charles River are without merit,” Chief Executive Officer James Foster said in the earnings presentation. “As we have stated before, we are committed to ensuring our operations are fully compliant with all US and international laws and regulations.”