Charles River has been riding rough waters in 2024, and, as the CRO’s CEO predicted, the third quarter proved no exception. Excluding foreign currency translation, acquisitions and divestitures, the company’s revenue dropped organically by 2.7% this quarter.
Revenue for the quarter was $1.01 billion, down from $1.03 billion in both last quarter and the third quarter of 2023, Charles River announced in a Nov. 6 release.
Revenue grew in the company’s Manufacturing Solutions and Research Models and Services departments, but those gains were more than offset by lower revenue in the Discovery and Safety Assessment department, according to the release.
“We are continuing to navigate through a challenging period as global biopharmaceutical clients reduce spending in conjunction with major restructuring and pipeline reprioritization activities,” Charles River CEO James Foster said in the release, “but overall demand trends do not appear to have deteriorated further.”
Second-quarter revenue also took a hit this year, and, in response, the company laid off 3% of its workforce—about 642 employees. Last quarter’s decline was also blamed on the Discovery and Safety Assessment department, along with the Research Models and Services department, which has since bounced back.
In response to the third-quarter dip, Charles River is continuing its strategy of aggressively managing cost structure, enhancing clients’ experiences and protecting shareholder value, Foster said.
Charles River isn’t the only CRO to have struggled in the third quarter.
Irish firm Icon reported third-quarter revenue of $2.03 billion, underperforming analyst expectations of $2.14 billion and leading the company to plan for layoffs.