BEVERLY HILLS, May 7 (Reuters) - Pharmaceutical company

Charles River Laboratories ( CRL ) has reached a settlement with

activist investor Elliott Investment Management to add four new

directors to its board and launch a strategic review of the

business.

Elliott's Global Head of Engagement Steven Barg will join

the board along with three other independent directors who have

expertise in the pharmaceutical industry, the company said,

confirming news Reuters reported earlier on Wednesday.

Rapport Therapeutics ( RAPP ) CEO Abe Ceesay, former

ImmunoGen CEO Mark Enyedy and Rio Tinto Lithium CEO Paul Graves

will also join the board.

Elliott has become the largest investor in Charles River, a

top research contractor that helps drug makers with clinical

trials and is currently valued at $5.7 billion, but its exact

stake could not be determined. The firm's holding has not been

previously reported.

As part of the settlement, Charles River will initiate a

comprehensive strategic review of its business to help push the

stock price higher, the sources said, noting this might include

finding ways to make the business more efficient among other

initiatives.

Charles River's stock fell last month after the U.S. Food

and Drug Administration said it plans to phase out conventional

animal testing for monoclonal antibodies and other drugs,

focusing on more effective and human-relevant methods. Over the

last 52 weeks, the stock price has slumped 51% and closed at

$115.41 on Tuesday.

Industry analysts said the April sell-off may have been

overdone as they see few changes from the FDA's plan for at

least a few years. Over the last five years, Charles River

supported more than 80% of FDA-approved novel drugs.

Elliott, one of the world's busiest and largest activist

investors with roughly $73 billion in assets, has extensive

experience investing in healthcare companies including Syneos

Health, Cardinal Health ( CAH ) and Catalent. Barg also sat on

the boards of Catalent and Cardinal Health ( CAH ).

Since Elliott's involvement, Cardinal's stock price has more

than doubled, Catalent was acquired by Novo Holdings - the

investment firm and holding company managing the assets of the

Novo Nordisk Foundation which owns Novo Nordisk - at

a 40% premium, and Syneos was taken private by Elliott.

(Reporting by Svea Herbst-Bayliss; Editing by Kate Mayberry and

Emelia Sithole-Matarise)