After the FDA announced plans to reduce, refine, or potentially replace animal testing requirements for the development of monoclonal antibodies and other drugs, Morgan Stanley said the FDA proposal yesterday “came as a surprise to most investors (and us) and clearly adds additional uncertainty” for Charles River (CRL) Laboratories at a time when the company is “already grappling with multiple headwinds elsewhere.” While the firm views the company as “a key part of the eventual solution” given their preeminent status as the preclinical CRO of choice, even if the new status quo involved decreasing dependence on animal models, it remains on the sidelines with an Equal Weight rating and $184 price target given this new uncertainty and existing other headwinds.
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