By Sam Boughedda
Charles River Laboratories (NYSE:CRL) shares plummeted over 14% Wednesday after the company said in its latest earnings report that it has received a subpoena from the U.S. Department of Justice in connection with an investigation into the Cambodian non-human primate (NHP) supply chain.
The company stated that it has been informed the investigation relates to several shipments of NHPs it received from its Cambodian supplier. NHPs are monkeys CRL sells for medical research.
"Charles River intends to fully cooperate with the U.S. government as part of their investigation," the CRL stated. "Due to ongoing investigations and the heightened focus on the Cambodian NHP supply chain in recent months, Charles River has voluntarily suspended NHP shipments from Cambodia at this time."
The U.S. Department of Justice announced in November 2022, via the U.S. Attorney's Office for the Southern District of Florida, that a Cambodian NHP supplier, as well as two Cambodian officials, had been criminally charged in relation to illegally importing NHPs into the U.S.
CRL topped profit and revenue estimates on Wednesday, posting earnings of $2.98 per share, $0.23 better than the analyst estimate of $2.75, on revenue of $1.1 billion versus the consensus estimate of $1.04B. However, its FY2023 EPS guidance of between $9.70 and $10.90 per share missed expectations.