Charles River Announces RMS Succession Plan and Organizational Enhancements
WILMINGTON, MA, July 1, 2009 – Charles River Laboratories International, Inc. (NYSE: CRL) today announced a succession plan for Research Models and Services (RMS) and enhancements to the Preclinical Services (PCS) and Sales organizations.
Renaud Retirement and Molho Promotion
Real H. Renaud, Corporate Executive Vice President and President, Global Research Models and Services, has announced his intention to retire by the end of 2010. As a first step in a planned twelve to eighteen month transition of Mr. Renaud’s responsibilities, we are pleased to announce the promotion of Davide Molho, D.V.M., to Corporate Senior Vice President, North American & European Research Models and Services. In his new role, Dr. Molho will assume responsibility for North American RMS, in addition to his leadership of the European RMS business.
James C. Foster, Chairman, President and Chief Executive Officer, said, “Real Renaud has had a stellar career at Charles River, beginning 45 years ago and rising through the ranks to head our global RMS business. Under his leadership, we have become the premier provider of research models and scientific support services to the drug development industry, recognized worldwide for our quality, biosecurity and scientific expertise. Real has developed a world-class management team, including his successor, Davide Molho, which positions us extremely well to maintain our market leadership.”
Mr. Renaud said, “Davide has been instrumental in the ongoing success of RMS Europe and the expansion of service offerings in that region. His client-focused approach has enabled him to drive continuing growth in Europe and his superior leadership skills have resulted in a fully integrated European RMS business unit with harmonized best practices. I look forward to working closely with him as we enhance our position as the leading global provider of research models and services to support drug research.”
Dr. Molho joined Charles River Italy in 1999, and was promoted to Director of Operations for RMS Italy in 2002. In 2005, his role was expanded to include all French RMS operations and in 2007, he became Corporate Vice President, European Research Models and Services, with responsibility for all European RMS operations.
Mr. Foster also said, “In today’s challenging economic environment, we are continually identifying new strategies to enhance customer satisfaction, improve efficiencies and strengthen business operations. Our clients are transforming their business models, and in order to continue to provide the superior client service which they have come to expect from us, we must evolve with them. The PCS organizational changes will enhance our ability to provide customers with a centralized, integrated global approach to their drug development programs across all business segments, and the Sales realignment will provide our clients access to the full breadth of Charles River’s extensive product and service portfolio through a central point of contact. The PCS changes will also facilitate the implementation of operational efficiencies identified through our Six Sigma initiatives, which we believe will enable us to improve the cost effectiveness of our business while driving sales growth.”
Restructure of Preclinical Services
Through the restructure of the PCS business, we have created a dual-accountability structure with both global functional teams and site-level management, the purpose of which is to elevate the harmonization and integration of all services across the PCS organization. By doing so, we will enable the seamless and consistent delivery of services to our clients worldwide. In combination with the Sales organization realignment, we also expect this restructure to facilitate interaction between the Company and our clients, and to enhance their access to the services offered across our global PCS operation. From individual study through program management, we will provide services tailored to meet each client’s particular requirements, utilizing expertise from various facilities to support client programs, regardless of the specific site at which the program is resident.
We expect a significant benefit from this restructuring initiative will be the ease with which we will be able to leverage our Lean Six Sigma and other process harmonization efforts to standardize on best-in-class processes across the PCS organization. This will enable us to deliver increasing value to our clients in support of their efforts to reduce drug development cycle time and cost.
Under the new global operations structure, members of the existing senior PCS management team have broad responsibility for functional areas and site-specific operations, including:
Dr. Nancy Gillett, Corporate Executive Vice President and President, Global Preclinical Services, said, “As drug development becomes more complicated and our clients’ requirements for scientific support increase, they need a responsive partner who can offer a broad portfolio of scientific services, on demand. Irrespective of where the client is located, or in which of our facilities they place their drug development programs, our new matrix structure will enable us to consistently and efficiently provide the premier services they need, from proposal to regulatory submission.”
Sales Organization Realignment
Beginning immediately and extending through year end, Charles River is implementing a realignment of our Sales organization. The goal of the realignment is to migrate from a sales approach which focuses on our portfolio of products and services to one focused on value-based solutions by customer segment. We expect this approach to enhance client interaction and improve our ability to address their individual needs. We believe these changes will strengthen our existing client relationships and enable us to attract new clients as we endeavor to drive sales growth.
Through this realignment, Charles River is establishing a three-pronged sales organization which addresses global biopharmaceutical companies, small and mid-size pharmaceutical and biotechnology companies, and the academic and government sector. Each of these market segments has particular needs which can be more effectively addressed by dedicated sales resources with knowledge of and access to Charles River’s entire product and services portfolio, both PCS and RMS.
Dr. Christophe Berthoux, Corporate Executive Vice President, Global Sales and Marketing, and Chief Commercial Officer, said, “This is the next step in the evolution of our Sales organization from locally to globally focused. Consistent with the PCS restructuring, we believe the realigned sales force will more effectively address our clients’ needs, and be able to access resources throughout the organization to support each client’s specific requirements.”
Caution Concerning Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “will,” “may,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements also include statements regarding the impact of specific actions intended to improve overall operating efficiencies and profitability (including the restructuring of our PCS segment and our Sales organization realignment), the RMS succession plan, and the future demand for drug discovery and development products and services (particularly in light of the challenging economic environment), including the outsourcing of these services and present spending trends by our customers. Forward-looking statements are based on Charles River’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. Those risks and uncertainties include, but are not limited to: a decrease in research and development spending, a decrease in the level of outsourced services, or other cost reduction actions by our customers; the ability to convert backlog to sales; special interest groups; contaminations; industry trends; new displacement technologies; USDA and FDA regulations; changes in law; continued availability of products and supplies; loss of key personnel; our ability to effectively implement the PCS restructuring, Sales realignment and RMS succession plan; interest rate and foreign currency exchange rate fluctuations; changes in tax regulation and laws; changes in generally accepted accounting principles; and any changes in business, political, or economic conditions due to the threat of future terrorist activity in the U.S. and other parts of the world, and related U.S. military action overseas. A further description of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in Charles River's Annual Report on Form 10-K as filed on February 23, 2009, as well as other filings we make with the Securities and Exchange Commission. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by Charles River, and Charles River assumes no obligation and expressly disclaims any duty to update information contained in this news release except as required by law.
About Charles River
Accelerating Drug Development. Exactly. Charles River provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts. Our approximately 8,700 employees worldwide are focused on providing clients with exactly what they need to improve and expedite the discovery, development through first-in-human evaluation, and safe manufacture of new therapies for the patients who need them. To learn more about our unique portfolio and breadth of services, visit www.criver.com.
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Investor Contact:Susan E. HardyCorporate Vice President, Investor Relations781.222.6190
Media Contact:Amy CianciarusoAssociate Director, Public Relations781.222.6168
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