Charles River Labs snared a five-year, $95.7 million contract to manage and provide staffing for the National Institute of Allergy and Infectious Diseases (NIAID) animal care program for the federal agency’s Division of Intramural Research.
Under the contract, Charles River will support the NIAID’s onsite vivarium and related research operations. The program is required to ensure the humane care and use of research models, and the efficient management of the agency’s research model operations.
The NIAID is one of the largest institutes under the umbrella of the National Institutes of Health.
“Charles River’s focus on science, research model care, and productivity will enable NIAID to streamline its research by delivery operational and cost efficiencies through strategic insourcing,” James Foster, the company’s president and CEO, said in a statement. “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.”
The contract commenced last month with the initial period running through Sept. 13, 2019. It includes annual renewal options to extend the contract for an additional four years through Sept. 13, 2023. Charles River expects the contract to generate revenue of about $18 million during the initial 12-month period with modest increases over subsequent periods. It is not expected to have a “meaningful impact” on the company’s 2018 financial results due to the start date falling near the end of the third quarter.
In August, Charles River reported that second-quarter revenues jumped 24.8% to $585.3 million from $469.1 million for the previous period a year ago mainly on support from recent acquisitions and a favorable foreign currency environment.