The FDA's recent initiative to possibly reduce or overhaul animal testing requirements for monoclonal antibodies and other pharmaceuticals has introduced new challenges for Charles River Laboratories (CRL, Financial). This move by the FDA has caught many investors off guard, according to Morgan Stanley, and adds a layer of unpredictability for the company, which is currently facing several other challenges.
Despite these potential changes, Charles River Laboratories is considered a critical player in the preclinical contract research organization (CRO) sector. Morgan Stanley suggests that even in a future scenario with less reliance on animal models, CRL's expertise will be a vital asset. However, given the current uncertainties and ongoing pressures, the firm remains cautious, maintaining an Equal Weight rating on the stock with a target price of $184.
