Nov 5 (Reuters) - Contract drug developer Charles River

Laboratories ( CRL ) on Wednesday raised its annual profit

forecast after posting strong third-quarter results, helped by

stabilized 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 now expects full-year revenue to decline

between 0.5% and 1.5%, compared with its previous forecast of a

decline of 0.5% to 2.5%.

The company reported revenue of $1 billion for the quarter

ended September 27, surpassing analysts' average estimate of

$990.8 million, according to data compiled by LSEG.

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.