Charles River Laboratories is a global Contract Research Organization (CRO) offering a wide range of products and services to help pharma, biotech and medical device companies in their research and drug development efforts.
What has changed in Charles River Laboratories since you became CEO in 1992? What has remained the same?
Since I took over as CEO in 1992, Charles River Laboratories has undergone significant transformation while retaining core elements that define its identity. We have expanded to a global presence with 21,000 employees across 150 locations, through strategic acquisitions and organic growth, and have maintained a balance between being a large, complex organization and retaining a small-company, familial atmosphere. This culture fosters great teamwork and resilience, with employees readily coming together to address challenges. This "secret sauce" of maintaining a familial culture despite our size is not only a competitive advantage, but it has also been pivotal in our M&A strategy, enabling us to identify and integrate companies with similar values.
The scope of our operations has dramatically diversified from our initial focus – we have evolved from producing mice for biomedical research to encompassing the entire drug development pipeline. This expansion includes everything from early discovery to post-market testing, except for human clinical trials, which we exited due to strategic fit issues. Our broad service offering has become indispensable to the biotech and pharmaceutical industries, with over 80% of approved drugs having passed through our hands. This evolution reflects our commitment to speed, efficiency, and excellence in drug development, making us a critical partner in the industry's quest to bring new treatments to market swiftly and safely.
Would you say Charles River's collaboration with biotechs is especially pronounced?
Indeed, our engagement with the biotech sector is significant. Charles River collaborates with nearly every pharmaceutical and biotech company worldwide, including extensive work with venture capital firms and their portfolio companies from the outset. This deep involvement is more pronounced in biotech, where our services are integral to the development and approval of their drugs, reflecting a higher percentage of involvement compared to the pharmaceutical sector. As biotech companies often lack the resources or expertise to conduct the complex processes of drug development in-house, they rely heavily on our comprehensive services. This reliance has only grown as pharmaceutical companies have increasingly outsourced these functions to focus on their core competencies.
We have noticed an upsurge in cell and gene therapy research in the past year - has this been mirrored in your operations and what do you believe to be its impact on human health?
Cell and gene therapy represents the most dynamic growth area within our portfolio, signaling a significant shift in our business focus. Initially, the nascent science behind these therapies presented challenges, but we have gained momentum and are now experiencing strong traction in this domain.
The potential of cell and gene therapies to not just treat but cure serious diseases is immense, although their high costs and insurance coverage remain concerns. We are particularly excited about manufacturing drugs for sickle cell anemia with partners like Vertex Pharmaceuticals, which marks a significant step towards commercializing these therapies. Our involvement extends from discovery to full-scale commercial production. This area is expected to be the fastest-growing segment of our business, driven by the profound impact these therapies can have on patients' lives.
Could you expand on the significance of your partnership with Vertex?
Our partnership with Vertex is a testament to our collaborative and integrative approach to drug development. Vertex, known for its work in cystic fibrosis and now expanding into areas like sickle cell anemia, has transitioned from a clinical trial client to a commercial partner. This shift required us to navigate regulatory audits successfully and work closely with Vertex's team, reflecting our role as an extension of their operations.
Our engagement with Vertex illustrates our broader strategy in the biopharmaceutical industry: providing expertise and infrastructure that enables our partners to focus on their core research and development activities without the need to build these capabilities in-house. As we continue to invest in and expand our cell and gene therapy offerings, partnerships like the one with Vertex are crucial for bringing innovative therapies to patients.
Could you introduce us to Logica and your activities in leveraging AI for drug discovery?
AI plays a crucial role in preclinical and clinical study designs at Charles River, promising to accelerate the drug development process by leveraging historical data to predict better outcomes. However, the journey towards fully integrating AI is complex, with regulatory hurdles around safety profiles. AI's potential to streamline the discovery process is undeniable, allowing for quicker identification of lead compounds from thousands of candidates. Our initiative, Logica, is a testament to this potential, aiming to significantly reduce the time and cost associated with reaching promising drug candidates. Despite the long road ahead and the uncertainty of AI fully replacing traditional methods, especially in toxicology, its influence in preclinical trials and discovery phases is set to grow, potentially speeding up the entire drug development process.
What role do animals play in experimentation today? How do you respond to criticisms from animal rights activists?
The use of animals in drug testing is a non-negotiable and is a regulatory requirement across the globe to ensure medicines are safe for patients to use, meaning they play a vital role in the development of medical treatments for humans and animals alike. Despite criticisms from some, the reality is that every medical advancement has, to some extent, been facilitated by animal research.
That said, Charles River works toward the refinement, reduction, and replacement (3Rs) of animal use, investing significantly in alternative technologies and methods. Our efforts have already led to a decrease in the number of animals used and we continue to explore innovative approaches, like virtual control groups, to further reduce reliance on animals without compromising the vital insights they provide. While the prospect of completely eliminating animal testing remains distant, advancements in technology and methodology are enabling significant reductions in animal use in research.
If you were to explain to a non-professional reader why they should remember Charles River and follow your work in the coming years, what would you say?
Charles River is at the forefront of developing life-saving drugs. Our work is critical in the development of new treatments and bringing these medications to markets where they can make a difference for patients.
With continuous investment in breakthrough technologies and methodologies, our contribution to medical science is becoming increasingly vital and plays a key role in not only speeding up the drug development process, but also ensuring the safety and efficacy of new therapies. Following the work we do means having a view into research and science that underpins many of the future advancements in healthcare.
