Charles River secures five-year, $95.7m insourcing contract
The National Institute of Allergy and Infectious Diseases (NIAID) awarded the contract as part of the institute’s Division of Intramural Research animal care program.
The initial period extends through September 13, 2019, and includes annual renewal options for an additional four years, through September 13, 2023.
Charles River was not able to provide any further comment about any potential capacity increases to support the award.
According to the company, the contract is expected to generate incremental revenue of approximately $18m over the first year, with “modest increases” in subsequent periods. It is not anticipated to affect 2018 financial results.
As per the contact, Charles River’s Insourcing Solutions business will manage roughly 200 on-site, Charles River personnel supporting biomedical research across multiple scientific disciplines.
"Through strategic insourcing, NIAID will be able to leverage Charles River’s strong science and deep commitment to model care to drive their programs forward," Ann Murray, director, business development, Insourcing Solutions at Charles River told us.
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Services will be provided at various NIAID and other government facilities and include veterinary medical care, research model husbandry, technical support, data management, routine maintenance, sanitation, transportation, logistics, and administrative support, Murray explained.
“We believe that an increasing number of government and academic institutions, as well as biopharmaceutical clients, understand the value of utilizing our flexible and efficient staffing solutions,” said Charles River CEO and president James Foster in a press release.
Fueled by increasing investments from biotech, the company earlier this year said it expects to double the size of its business over the next five years – organically and through M&A – to become a more responsive partner.
In August, the Wilmington, MA-headquartered company reported a Q2 2018 revenue of $585.3m, marking a 24.8% increase over last year.
