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Charles River Q4 Profit Tops Estimates; To Acquire Cognate BioServices

Charles River Laboratories International, Inc. (CRL) reported fourth-quarter earnings per share on a non-GAAP basis of $2.39, an increase of 18.9% from last year. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $2.10, for the quarter. Analysts' estimates typically exclude special items.

Fourth quarter revenue was $791.0 million, an increase of 14.4% from a year ago. Organic revenue growth was 10.3%. Analysts expected revenue of $756.86 million, for the quarter.

For 2021, excluding Cognate BioServices, the company projects: non-GAAP EPS of $9.00 - $9.25; and revenue growth, organic 9% - 11%.

Charles River has signed a definitive agreement to acquire Cognate BioServices, Inc., a cell and gene therapy contract development and manufacturing organization, for approximately $875 million in cash. Headquartered in Memphis, Tennessee, Cognate has operations in North America and Europe.

Charles River expects Cognate to generate annual revenue of approximately $140 million in 2021, and to grow at least 25% annually over the next five years. The acquisition is expected to be neutral to non-GAAP earnings per share in 2021, and accretive thereafter.

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