© Reuters Charles River Laboratories (CRL) shares plunge after Justice Division subpoena regarding NHPs
By Sam Boughedda
Charles River Laboratories (NYSE:) shares plummeted over 14% Wednesday after the corporate mentioned in its newest earnings report that it has acquired a subpoena from the U.S. Division of Justice in reference to an investigation into the Cambodian non-human primate (NHP) provide chain.
The corporate acknowledged that it has been knowledgeable the investigation pertains to a number of shipments of NHPs it acquired from its Cambodian provider. NHPs are monkeys CRL sells for medical analysis.
“Charles River intends to completely cooperate with the U.S. authorities as a part of their investigation,” the CRL acknowledged. “As a consequence of ongoing investigations and the heightened concentrate on the Cambodian NHP provide chain in latest months, Charles River has voluntarily suspended NHP shipments from Cambodia right now.”
The U.S. Division of Justice introduced in November 2022, by way of the U.S. Lawyer’s Workplace for the Southern District of Florida, {that a} Cambodian NHP provider, in addition to two Cambodian officers, had been criminally charged in relation to illegally importing NHPs into the U.S.
CRL revenue and income estimates on Wednesday, posting earnings of $2.98 per share, $0.23 higher than the analyst estimate of $2.75, on income of $1.1 billion versus the consensus estimate of $1.04B. Nevertheless, its FY2023 EPS steering of between $9.70 and $10.90 per share missed expectations.
