Nov 5 (Reuters) - Contract drug developer Charles River

Laboratories ( CRL ) on Wednesday announced plans to sell some

underperforming or non-core assets and ramp up cost-cutting

measures in its latest effort to boost profits.

The moves came after the company raised its annual profit

target, and following a review by the board launched in May.

The divestitures, representing about 7% of estimated 2025

revenue, are expected to add at least 30 cents to the company's

adjusted earnings per share annually. It did not disclose which

businesses were up for sale.

Charles River also said it would generate an additional

$70 million in annual cost savings by 2026 through process

improvements, procurement synergies and by implementing a global

business services model.

That is on top of $225 million in restructuring benefits

already underway.

The company also posted strong third-quarter results, helped

by stable demand for its drug discovery and development services

from biotech clients.

"Demand for our extensive portfolio of early-stage research

and manufacturing products and services remains stable," said

CEO James Foster.

"We believe that positive signals are beginning to emerge

which indicate that the industry may be on a path towards

recovery; however, sustained improvement in our business will

take time," he added.

Contract research firms have witnessed reduced spending from

biotech clients in the past two years. The funding crunch, which

was expected to improve this year, could be prolonged due to

policy uncertainty from the Trump administration.

The Massachusetts-based company raised its 2025 adjusted

profit forecast to a range of $10.10 to $10.30 per share, from

its previous view of $9.90 to $10.30 per share.

Charles River, which also has a contract manufacturing

business, reported a quarterly profit of $2.43 per share on an

adjusted basis, compared with estimates of $2.34 per share.