Charles River Laboratories International (CRL) risk factors, FY2024 10-K

Business and Operational Risks

1. 01We bear financial risk for contracts that may be terminated or reduced in scope, underpriced, subject to cost overruns or delays
2. 02CHARLES RIVER LABORATORIES INTERNATIONAL, INC
3. 03Upgrading and integrating our business systems could result in implementation issues and business disruptions
4. 04We have in the past experienced and in the future could experience unauthorized access into our information systems
5. 05If 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
6. 06Failure to execute our business strategy could adversely impact our growth and profitability
7. 07Failure to successfully realize cost savings from our restructuring initiatives would adversely impact our growth and profitability
8. 08A significant part of our revenue is derived from operations outside the U.S. We expect that international revenue will continue to account for a significant percentage of our total revenue for the foreseeable future
9. 09Our operations might be affected by the occurrence of a natural disaster or other catastrophic event
10. 10Negative attention from special interest groups may impair our business
11. 11Several 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
12. 12Demand volatility and risk of credit losses from clients may adversely affect our business
13. 13A reduction or delay in government funding of R&D may adversely affect our business
14. 14Changes 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
15. 15Our 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
16. 16CDMO services are highly complex and failure to provide quality and timely services to our CDMO customers, could adversely impact our business
17. 17Contaminations 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
18. 18The outsourcing trend in non-clinical and clinical stages of drug discovery and development may decrease, which could impair our growth
19. 19The industries in which we operate are highly competitive
20. 20New technologies may be developed, validated and increasingly used in biomedical research, which could reduce demand for some of our products and services
21. 21We may not be able to successfully develop and market new services and products
22. 22Costs increasing more rapidly than market prices in certain of our businesses could reduce profitability
23. 23Any 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
24. 24We 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
25. 25actions), government investigation or inquiries, enforcement actions, claims, proceedings, judgements, awards, penalties, sanctions or other adverse impacts that could have a material adverse effect on our business
26. 26Changes 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
27. 27Non-clinical and clinical contract research services create a risk of liability
28. 28The 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
29. 29We are involved in legal proceedings that could adversely affect our business, financial condition, and results of operations
30. 30We depend on key personnel and may not be able to retain these employees, which could harm our business
31. 31If 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
32. 32We depend on the availability of, and good relations with, our team members
33. 33Our debt level could adversely affect our business and growth prospects
34. 34Impairment of long-lived tangible assets and intangible assets (such as goodwill and other intangible assets) may adversely impact future results of operations
35. 35Since 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
36. 36Our quarterly operating results may vary, which could negatively affect the market price of our common stock
37. 37Increasing focus on environmental, social and governance (ESG) matters, including climate-related issues, may impact our business, financial results or stock price