Charles River Laboratories International (CRL) risk factors: FY2025 10-K

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1. Legal and Regulatory Risk Factors
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3. Labor and Employment Risk Factors
4. Financial and Accounting Risk Factors

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1. We bear financial risk for contracts that may be terminated or reduced in scope, underpriced, subject to cost overruns or delays.
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3. Upgrading and integrating our business systems could result in implementation issues and business disruptions.
4. We have in the past experienced and in the future could experience unauthorized access into our information systems.
5. Uncertainties with respect to the development, deployment, and use of artificial intelligence present new risks and challenges and could adversely affect our business and reputation.newAI
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7. If we are not successful in selecting and integrating the businesses and technologies we acquire or partner with, or if we do not manage our current and future site closures and divestitures, our business may be adversely impacted.
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9. Failure to execute our business strategy could adversely impact our growth and profitability.
10. Failure to successfully realize cost savings from our restructuring initiatives would adversely impact our growth and profitability.
11. Our business is subject to risks relating to operating internationally, including changes in foreign currency exchange rates.
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13. Our operations might be affected by the occurrence of a natural disaster or other catastrophic event.
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15. Negative attention from special interest groups may impair our business.
16. Our review of potential strategic alternatives may not result in an executed or consummated transaction or other strategic alternative, and the process of reviewing strategic alternatives or the outcome could adversely affect our business.new

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1. Several of our product and service offerings, including our non-human primate supply, are dependent on a limited source of supply that, when interrupted, adversely affects our business.
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3. Demand volatility and risk of credit losses from clients may adversely affect our business.
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5. A reduction or delay in government funding of R&D may adversely affect our business.
6. Changes in government regulation or in practices relating to the pharmaceutical or biotechnology industries, including potential healthcare reform, could decrease the need for the services we provide.
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8. Our Biologics Solutions business, financial condition and results of operations may be adversely affected if the products we manufacture and/or test for our customers do not gain market acceptance.
9. CDMO services are highly complex and failure to provide quality and timely services to our CDMO customers, could adversely impact our business.
10. Contaminations in our animal populations can damage our inventory, harm our reputation for contaminant-free production, result in decreased sales and cause us to incur additional costs.
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12. The outsourcing trend in non-clinical and clinical stages of drug discovery and development may decrease, which could impair our growth.
13. The industries in which we operate are highly competitive.
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15. New technologies may be developed, validated and increasingly used in biomedical research, which could reduce demand for some of our products and services.
16. We may not be able to successfully develop and market new services and products.
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18. Costs increasing more rapidly than market prices in certain of our businesses could reduce profitability.
19. Legal and Regulatory Risk Factors
20. Any failure by us to comply with applicable regulations and related guidance could harm our reputation and operating results, and compliance with new regulations and guidance may result in additional costs.
21. We are required to comply with stringent, complex and evolving laws, rules, regulations and standards in many jurisdictions, as well as contractual obligations, relating to data privacy and security. Any actual or perceived failure to comply with these requirements could have a material adverse effect on our business.
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23. Failure to comply with U.S., state, local or international environmental, health, safety and sustainability laws and regulations, including regulations issued by the Occupational Safety and Health Administration, Environmental Protection Agency, Nuclear Regulatory Agency and Department of Transportation, could result in fines and penalties and loss of licensure, and have a material adverse effect upon the Company’s business.
24. Changes in U.S. and International Tax Law, results of tax audits, or material changes in our stock price could have a material adverse impact on our effective tax rate and financial results.
25. Non-clinical and clinical contract research services create a risk of liability.
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27. The failure to successfully obtain, maintain and enforce intellectual property rights and defend against assertions of third parties to intellectual property rights could adversely affect us.
28. Our by-laws designate the state courts located in the State of Delaware as the sole and exclusive forum for certain actions, including derivative actions, which could limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with the Company and its directors, officers, other employees, or the Company's stockholders and may discourage lawsuits with respect to such claims.
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30. We are involved in legal proceedings that could adversely affect our business, financial condition, and results of operations.
31. Significant developments or changes in national laws or policies to protect or promote domestic interests and/or address foreign competition can have an adverse effect on our business and financial statements.new
32. Labor and Employment Risk Factors
33. We depend on key personnel and may not be able to retain these employees, which could harm our business.
34. If we are unable to attract, hire or retain key team members or a highly skilled global workforce with various backgrounds and experiences, it could have a negative impact on our business, financial condition or results of operations.
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36. We depend on the availability of, and good relations with, our team members.
37. Financial and Accounting Risk Factors
38. Our debt level could adversely affect our business and growth prospects.
39. Impairment of long-lived tangible assets and intangible assets (such as goodwill and other intangible assets) may adversely impact future results of operations.
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1. Since we do not expect to pay any cash dividends for the foreseeable future, our shareholders will benefit from an investment in our common stock only if it appreciates in value.
2. Our quarterly operating results may vary, which could negatively affect the market price of our common stock.
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4. Increasing focus on environmental, social and governance (ESG) matters, including climate-related issues, may impact our business, financial results or stock price.

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