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Charles River's (CRL) New Launch to Boost Gene Therapy Workflow

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Charles River Laboratories International, Inc. (CRL - Free Report) recently announced the launch of its nAAVigation Vector Platform (nAAVigation). The company will launch the nAAVigation platform approach and discuss its benefits at the Cell and Gene Meeting in Carlsbad, CA, on Oct 12.

The nAAVigation approach, based on a proprietary high-productivity HEK293 suspension cell line, is adaptable per clients’ scale-up and serotype requirements.

The latest product offering is expected to significantly solidify Charles River’s foothold in the niche space and strengthen its Research Models and Services segment.

Significance of the Launch

Charles River’s latest nAAVigation platform has leveraged its Adeno-Associated Virus (AAV) vector contract development and manufacturing experience and biologics testing knowhow and established a platform which streamlines the pathway to Good Manufacturing Practice (GMP) AAV vector manufacturing without significant process development. The platform is expected to have the capability of significantly reducing a program’s timeline to GMP for viral vector gene therapy developers. This, in turn, will likely reduce the timeline to less than eight months, unlike traditional manufacturing workflows.

The nAAVigation platform accelerates time to clinic by leveraging various sources, including established development processes, among others.

Management believes that the nAAVigation platform will likely support its cell and gene therapy clients from early target identification through clinical-stage manufacturing as well as increase speed and efficiency for viral vector production.

Industry Prospects

Per a report by Research and Markets published on GlobeNewswire, the global cell and gene therapy market is expected to grow from $6.58 billion in 2021 to $21.33 billion in 2026 at a CAGR of 25.6%. Factors like increasing incidences of rare and chronic diseases, advancements in cell and gene therapy, and a rising number of clinical trials are likely to drive the market.

Given the market potential, the latest launch is expected to significantly strengthen Charles River’s global Cell and Gene Therapy portfolio.

Notable Developments

Last month, Charles River announced a manufacturing collaboration with non-profit foundation Cure AP-4, where it will provide High Quality plasmid DNA for Cure AP-4’s Phase I/II gene therapy trials against Adapter-Protein 4 Hereditary Spastic Paraplegia.

In August, Charles River announced the addition of five Charles River Accelerator and Development Lab locations in California and Washington, which provides flexible, turnkey vivarium rental space supported by Charles River’s technical and veterinary support expertise in key biohubs.

Also, in August, Charles River received regulatory approval, in the form of GMP certification, to commercially produce allogeneic cell therapy drug products for distribution in Europe from the European Medicines Agency.

Price Performance

Shares of the company have lost 50.7% in the past year compared with the industry’s 36.6% decline and the S&P 500's 18% fall.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Currently, Charles River carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Globus Medical, Inc. (GMED - Free Report) and McKesson Corporation (MCK - Free Report) .

AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has lost 7.9% compared with the industry’s 36.6% decline in the past year.

Globus Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.2%. GMED’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 2.1%.

Globus Medical has lost 23.5% against the industry’s 33.9% decline over the past year.

McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.

McKesson has gained 73.6% against the industry’s 16% decline over the past year.

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