Feb 25 (Reuters) – Contract drug developer Charles River Laboratories raised its 2026 profit forecast on Wednesday, after it announced the sales of some underperforming assets to peer IQVIA and private equity firm GI Partners.
The company had unveiled plans to divest underperforming assets in November, without naming buyers.
The sales come at a time when the company is betting on an improvement in demand for its services as it sees more proposals and fewer cancellations from drugmakers, after U.S. government drug price negotiations weighed on activity. Biotech clients are also seeing an uptick in funding since 2025, following a post-pandemic crunch.
The company will sell certain European assets within its drug discovery business to IQVIA for around $145 million, including potential additional payments of up to $10 million.
The assets generated $144 million in revenue in 2025, and include five European sites.
IQVIA said the acquisition, expected to close in the second quarter, will expand its end‑to‑end drug discovery capabilities, adding new approach methodologies and a small‑molecule AI platform to accelerate discovery programs and support growing demand for non-animal research methods.
Charles River will also sell its contract development and manufacturing (CDMO) and cell solutions units, which together generated $143 million in 2025 revenue, to GI Partners for a consideration primarily contingent on future performance.
The CDMO business provides services related to production for gene-modified cell therapies and types of gene therapies, while cell solutions provides human-derived cellular materials used in the development and production of cell therapies.
Charles River said the moves, aimed at focusing on businesses with greater synergy to its core portfolio, would trim reported 2026 revenue by a little over $200 million but lift adjusted operating margin by at least 100 basis points.
It now expects 2026 adjusted per share profit of $10.80 to $11.30, up 10 cents at the lower and upper ends from its prior range.
(Reporting by Puyaan Singh in Bengaluru; Editing by Devika Syamnath)
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