Charles River Labs Lowers Guidance, Acquires Two Companies
At the same timeCharles River Laboratories announced the acquisition of two companies, the preclinical contract research organization (CRO) lowered its full-year guidance for 2009.
In second-quarter financial results released earlier this week, Charles River’s net sales and income both decreased from the same period last year. Sales for the quarter fell 12.5% to $308.2 million, down from $352.1 million in the second quarter of 2008. Net income for Q2 2009 was $34.2 million, or $0.52 per diluted share, compared to net income of $49.1 million, or $0.70 per diluted share, last year.
The Wilmington, Mass.-based company reduced its full-year earnings per share estimate to be in the range of $1.78 to $1.90, down from the range $1.86 to $2.16.
Along with its second-quarter results, Charles River announced the recent acquisition of Finland-based Cerebricon, a discovery services provider, and the pending purchase of Systems Pathology Company (SPC), a pathology-based software provider.
Cerebricon was purchased for $9 million in cash and will become a part of Charles River Discovery and Imaging Services.
SPC will be acquired for an initial payment of approximately of $24 million with future payments based on certain undisclosed milestones. This deal is expected to close by the end of August.
“We have focused our efforts on identifying those assets and arrangements which we believe will position us to offer our clients novel solutions to the challenges of drug development. Each of these deals brings unique capabilities to Charles River, which we believe are a strategic advantage as we endeavor to offer value-added solutions,” Charles River chairman, president and CEO James Foster said in a statement.