Charles River Laboratories International Inc (CRL) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Charles River Laboratories First Quarter 2023 Earnings Conference Call. This call is being recorded. (Operator Instructions) I would now like to turn the conference over to our host, Todd Spencer, Vice President of Investor Relations. Please go ahead.

女士們，先生們，感謝你們的支持，歡迎來到 Charles River Laboratories 2023 年第一季度收益電話會議。此通話正在錄音中。 （操作員說明）我現在想將會議轉交給我們的主持人，投資者關係副總裁托德斯賓塞。請繼續。

Good morning, and welcome to Charles River Laboratories First Quarter 2023 Earnings Conference Call and Webcast. This morning, I am joined by Jim Foster, Chairman, President and Chief Executive Officer; and Flavia Pease, Executive Vice President and Chief Financial Officer. They will comment on our results for the first quarter of 2023. Following the presentation, they will respond to questions.

早上好，歡迎來到 Charles River Laboratories 2023 年第一季度收益電話會議和網絡直播。今天上午，董事長、總裁兼首席執行官吉姆·福斯特 (Jim Foster) 也加入了我的行列；執行副總裁兼首席財務官 Flavia Pease。他們將對我們 2023 年第一季度的業績發表評論。演示結束後，他們將回答問題。

There is a slide presentation associated with today's remarks, which is posted on the Investor Relations section of our website at ir.criver.com. A webcast replay of this call will be available beginning approximately 2 hours after the call today and can also be accessed on our Investor Relations website. The replay will be available through next quarter's conference call.

有一個與今天的評論相關的幻燈片演示，它發佈在我們網站 ir.criver.com 的投資者關係部分。本次電話會議的網絡直播重播將在今天電話會議後約 2 小時開始提供，也可以在我們的投資者關係網站上訪問。重播將通過下一季度的電話會議提供。

I'd like to remind you of our safe harbor. All remarks that we make about future expectations, plans and prospects for the company constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated. During this call, we will primarily discuss non-GAAP financial measures, which we believe help investors gain a meaningful understanding of our core operating results and guidance.

我想提醒你我們的安全港。根據 1995 年《私人證券訴訟改革法案》，我們對公司未來預期、計劃和前景所做的所有評論均構成前瞻性陳述。實際結果可能與所示結果存在重大差異。在本次電話會議中，我們將主要討論非 GAAP 財務指標，我們認為這有助於投資者對我們的核心經營業績和指導有一個有意義的了解。

The non-GAAP financial measures are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. In accordance with Regulation G, you can find the comparable GAAP measures and reconciliations on the Investor Relations section of our website. I will now turn the call over to Jim Foster.

非 GAAP 財務指標不應被視為優於或替代根據 GAAP 編制的運營結果。根據 G 條例，您可以在我們網站的投資者關係部分找到可比的 GAAP 措施和對賬。我現在將把電話轉給吉姆·福斯特。

Good morning. We had a strong start to the year with organic revenue growth of 15.4% and non-GAAP earnings per share of $2.78 both wildly exceeding the outlook that we provided in February. The year began with a continuation of the strong demand and pricing environment in our DSA segment that we experienced through the end of last year. This was expected based on the strength of the backlog, which supports more than a year of DSA revenue.

早上好。我們今年開局強勁，有機收入增長 15.4%，非 GAAP 每股收益為 2.78 美元，均大大超過我們在 2 月份提供的展望。今年伊始，我們的 DSA 部門在去年年底經歷了強勁的需求和定價環境。這是基於支持超過一年的 DSA 收入的積壓量的預期。

Clients continue to choose to partner with Charles River for our industry-leading scientific expertise for the breadth and depth of our portfolio and for the flexible, efficient outsourcing solutions that we are able to provide to them.

客戶繼續選擇與 Charles River 合作，是因為我們行業領先的科學專業知識、我們產品組合的廣度和深度，以及我們能夠為他們提供的靈活、高效的外包解決方案。

We are a large, stable scientific partner focused on holistically supporting our clients' drug discovery, non-clinical development and manufacturing efforts, which we believe is increasingly important in the current market environment.

我們是一家大型、穩定的科學合作夥伴，專注於全面支持我們客戶的藥物發現、非臨床開發和製造工作，我們認為這在當前市場環境中變得越來越重要。

The biopharmaceutical end market seems slightly less robust than last year, which we had anticipated and factored into our initial guidance in February. Clients appear to be more thoughtful about their spending and have prioritized their programs at the beginning of the year. This is not surprising in light of the changing macroeconomic factors that are present today and the unprecedented level of biomedical research activity that occurred over the past several years. However, we still believe that our client base remains adequately funded with 1 sell-side analyst recently estimating that public biotechs still have about 3 years of cash on hand.

生物製藥終端市場似乎略遜於去年，這是我們在 2 月份的初步指導中預期和考慮的因素。客戶似乎對他們的支出更加周到，並在年初對他們的計劃進行了優先排序。鑑於當今不斷變化的宏觀經濟因素以及過去幾年中出現的前所未有的生物醫學研究活動水平，這並不奇怪。然而，我們仍然相信我們的客戶群仍然有足夠的資金，一位賣方分析師最近估計公共生物技術公司手頭仍有大約 3 年的現金。

Although we continue to watch the market closely, and are seeing a normalization of demand trends towards pre-pandemic levels. Our clients are continuing to move thousands of their critical programs forward with us. So we believe these trends and current business development activity firmly support our financial guidance for the year. Before I provide more details on our first quarter financial results, I would like to provide a brief update on the non-human primate or NHP supply situation.

儘管我們繼續密切關注市場，並且看到需求趨勢正朝著大流行前的水平正常化。我們的客戶將繼續與我們一起推進他們的數千個關鍵項目。因此，我們相信這些趨勢和當前的業務發展活動堅定地支持我們今年的財務指導。在我提供有關我們第一季度財務業績的更多細節之前，我想簡要介紹一下非人類靈長類動物或 NHP 供應情況的最新情況。

As you know, we suspended shipments of Cambodian NHPs into the U.S. in February. We took this action so that we could develop and implement new testing procedures that would reinforce our confidence that the NHPs we import from Cambodia, are purpose bred. We have made advancements towards identifying a new testing platform and implementing the new testing procedures and are engaged with the relevant government agencies in furtherance of the needed resolution. We have also been working in parallel to accommodate our clients' NHP-related study starts by utilizing our global safety assessment site network.

如您所知，我們在 2 月份暫停了將柬埔寨 NHP 運往美國。我們採取這一行動，以便我們能夠開發和實施新的測試程序，這將增強我們的信心，即我們從柬埔寨進口的 NHP 是專門培育的。我們在確定新的測試平台和實施新的測試程序方面取得了進展，並與相關政府機構合作以推動所需的解決方案。我們還一直在並行工作，通過利用我們的全球安全評估站點網絡來適應我們客戶的 NHP 相關研究啟動。

Our global scale is one of the key factors, which we believe differentiates us from the competition. We believe that these efforts will mitigate some of the NHP supply impact on our clients' programs that we expect during the second half of the year and afford us greater confidence in our 2023 financial guidance. Our wider guidance range continues to accommodate a number of scenarios related to the success of our mitigation efforts since our plans have not yet been fully implemented and NHP supply remains a fluid situation.

我們的全球規模是關鍵因素之一，我們認為這是我們在競爭中脫穎而出的關鍵因素之一。我們相信，這些努力將減輕我們預計在今年下半年 NHP 供應對我們客戶計劃的一些影響，並使我們對 2023 年的財務指導更有信心。由於我們的計劃尚未完全實施且 NHP 供應仍處於不穩定狀態，因此我們更廣泛的指導範圍繼續適應與緩解措施成功相關的許多情景。

As a reminder, biologic drugs cannot be approved for commercial use without NHPs. And it is critical that we work diligently with industry and government agencies to resolve the NHP situation and restore this important supply chain so that life-saving therapies can continue to move forward.

提醒一下，如果沒有 NHP，生物藥物就不能被批准用於商業用途。至關重要的是，我們必須與行業和政府機構一起努力解決 NHP 問題並恢復這一重要的供應鏈，以便挽救生命的療法能夠繼續向前發展。

I'll now provide highlights of our first quarter performance. Reported revenue of $1.03 billion in the first quarter of 2023, a 12.6% increase over last year. Organic revenue growth of 15.4% and was driven by the robust DSA performance as well as solid RMS growth. The manufacturing growth rate was impacted by a challenging year-over-year comparison as well as lower-than-anticipated Biologics Testing Volume to start the year.

我現在將提供我們第一季度業績的亮點。 2023 年第一季度報告的收入為 10.3 億美元，比去年增長 12.6%。有機收入增長 15.4%，這得益於強勁的 DSA 性能和穩健的 RMS 增長。製造業增長率受到具有挑戰性的同比比較以及年初低於預期的生物製劑測試量的影響。

By client segment, global biopharmaceutical companies, small and midsized biotechs and academic and government accounts, all made significant contributions to the growth rate. The operating margin was 21.2%, a decrease of 20 basis points year-over-year. The decline was driven by the Manufacturing and RMS segments.

按客戶群劃分，全球生物製藥公司、中小型生物技術公司以及學術和政府客戶均對增長率做出了重大貢獻。營業利潤率為 21.2%，同比下降 20 個基點。下降是由製造和 RMS 部門推動的。

Earnings per share were $2.78 in the first quarter, an increase of 1.1% from the first quarter of last year, strong low double-digit operating income growth was modestly -- was mostly offset by increased interest expense and a higher tax rate compared to the prior year as well as the impact of the Avian Vaccine divestiture.

第一季度每股收益為 2.78 美元，比去年第一季度增長 1.1%，強勁的低兩位數營業收入增長溫和——大部分被增加的利息支出和更高的稅率所抵消前一年以及禽疫苗資產剝離的影響。

Based on the strong first quarter performance and expectations for the remainder of the year, which remain largely consistent with our initial outlook, we are narrowing our organic revenue growth guidance to a range of 5% to 7.5% and our non-GAAP earnings per share guidance to a range of $9.90 to $10.90 for 2023. We have increased the lower end of the ranges by 50 basis points and $0.20 per share, respectively. As I mentioned, our outlook continues to reflect the anticipated financial impact of the Cambodian NHP supply constraints, which will have a greater impact on the second half results.

基於強勁的第一季度業績和對今年剩餘時間的預期，這與我們的初步展望基本一致，我們將有機收入增長指引縮小至 5% 至 7.5% 的範圍，我們的非 GAAP 每股收益2023 年的指導範圍為 9.90 美元至 10.90 美元。我們將範圍的下限分別提高了 50 個基點和每股 0.20 美元。正如我所提到的，我們的前景繼續反映柬埔寨 NHP 供應限制的預期財務影響，這將對下半年的業績產生更大的影響。

I'd like to provide you with additional details on our first quarter segment performance, beginning with the DSA segment's results. DSA revenue in the first quarter were $662.4 million, another significant increase of 23.6% on an organic basis. The Safety Assessment business continued to be the principal driver of DSA revenue growth, with significant contributions from study volume and base pricing with NHP pass-throughs also adding to the growth rate.

我想向您提供有關我們第一季度分部業績的更多詳細信息，首先是 DSA 分部的結果。第一季度 DSA 收入為 6.624 億美元，有機增長 23.6%。安全評估業務仍然是 DSA 收入增長的主要驅動力，研究量和基本定價以及 NHP 傳遞的顯著貢獻也增加了增長率。

Although revenue for Discovery Services increased in the quarter, growth rate continued to modulate which we believe is reflective of the current market environment, coupled with the shorter-term nature of both Discovery projects and the business's backlog. The DSA backlog decreased modestly on a sequential basis to $3 billion at the end of the first quarter from $3.15 billion at year-end. As previously mentioned in February, this trend is reflective of the normalization of booking and proposal activity that we experienced at the end of last year and in the first quarter.

儘管本季度 Discovery Services 的收入有所增加，但增長率繼續調整，我們認為這反映了當前的市場環境，以及 Discovery 項目和業務積壓的短期性質。 DSA 積壓訂單從年底的 31.5 億美元環比小幅下降至第一季度末的 30 億美元。正如之前在 2 月份提到的，這一趨勢反映了我們在去年年底和第一季度經歷的預訂和提案活動的正常化。

Clients are not booking work as far out as they did over the past few years and we believe this is the result of their evaluation of pipeline priorities and scheduling with a nearer-term focus. That said, we believe these trends in the current market environment, coupled with the strength of our current backlog, which still affords us 14 months of revenue coverage in our Safety Assessment business will drive the expected DSA revenue growth this year.

客戶沒有像過去幾年那樣提前預訂工作，我們認為這是他們評估管道優先級和以近期為重點進行調度的結果。也就是說，我們相信當前市場環境中的這些趨勢，加上我們目前積壓的實力，仍然為我們的安全評估業務提供 14 個月的收入覆蓋，將推動今年預期的 DSA 收入增長。

Our client base remains stable and resilient, our biotech clients continue to send us new programs and generated healthy double-digit revenue growth in the first quarter. It was also encouraging to see that biotech funding levels increased year-over-year by more than 20% in the first quarter to approximately $15 billion. We believe this higher funding demonstrates that venture capital remains a reliable source of funding to enable biotech clients to spend on their promising molecules and the public markets had a better quarter.

我們的客戶群保持穩定和彈性，我們的生物技術客戶繼續向我們發送新項目，並在第一季度產生了健康的兩位數收入增長。同樣令人鼓舞的是，第一季度生物技術資金水平同比增長 20% 以上，達到約 150 億美元。我們認

Moreover, large biopharmaceutical companies continue to move programs forward with vigor, with first quarter revenue growth outpacing biotechs and demonstrating the strength and balance of our client base.

此外，大型生物製藥公司繼續大力推進項目，第一季度收入增長超過生物技術公司，並展示了我們客戶群的實力和平衡。

Through the first 4 months of the year, 14 new drugs were approved by the FDA, which is on pace to exceed last year's total. Since we have worked on over 80% of the FDA-approved drugs over the last 5 years, we believe the pipeline of new drug supports ample future growth opportunities for us.

今年前 4 個月，FDA 批准了 14 種新藥，有望超過去年的總數。由於我們在過去 5 年中研究了超過 80% 的 FDA 批准藥物，我們相信新藥管道為我們提供了充足的未來增長機會。

However, after 3 consecutive quarters with extraordinary revenue growth above the 20% level, the DSA growth rate is expected to moderate over the course of this year due to 3 primary factors. The normalization of the demand trends, as just discussed, more challenging year-over-year comparisons as 2023 progresses and the impact of NHP supply constraints mostly in the second half of the year.

然而，在連續 3 個季度收入超常增長超過 20% 之後，由於 3 個主要因素，預計今年的 DSA 增長率將放緩。正如剛才所討論的，需求趨勢的正常化，隨著 2023 年的進展以及 NHP 供應限制的影響主要出現在下半年，與去年同期相比更具挑戰性。

We expect less of an impact from NHP supply constraints in the second quarter than originally planned because of our ability to collaborate with our clients, optimize study schedules, leverage our flexible global infrastructure and also due to our extensive backlog coverage across multiple study types.

我們預計第二季度 NHP 供應限制的影響比原計劃要小，因為我們有能力與客戶合作、優化研究計劃、利用我們靈活的全球基礎設施，以及我們對多種研究類型的廣泛積壓覆蓋。

And as I said earlier, the strong first quarter results and our progress with regard to additional mitigation efforts around the NHP supply constraints over the course of this year, have also improved our confidence in our full year financial guidance. We are moving forward with plans to reconfirm NHP study starts that are already scheduled for the second half of the year.

正如我之前所說，今年第一季度的強勁業績以及我們在圍繞 NHP 供應限制的額外緩解措施方面取得的進展，也增強了我們對全年財務指導的信心。我們正在推進計劃，以重新確認已經安排在今年下半年開始的 NHP 研究。

Based on communications with our clients, we are confident that we remain the preferred partner for their preclinical development activities because of our global scale, scientific differentiation, exceptional quality and the value that we bring to the research and development efforts.

基於與客戶的溝通，我們相信，由於我們的全球規模、科學差異化、卓越的質量以及我們為研發工作帶來的價值，我們仍然是他們臨床前開發活動的首選合作夥伴。

Even in this time of disruption in the NHP supply chain, we do not believe the competition can provide a better value proposition to clients than we can.

即使在這個 NHP 供應鏈中斷的時期，我們也不相信競爭可以為客戶提供比我們更好的價值主張。

The DSA operating margin was 29% for the first quarter, a 610 basis point increase from the first quarter of 2022. The increase continued to be driven by operating leverage associated with a meaningfully higher revenue in the Safety Assessment business as well as price increases.

第一季度 DSA 營業利潤率為 29%，比 2022 年第一季度增加了 610 個基點。這一增長繼續受到與安全評估業務收入顯著增加以及價格上漲相關的經營槓桿的推動。

RMS revenue was $199.8 million, an increase of 6.8% on an organic basis over the first quarter of 2022. The RMS segment benefited from broad-based demand for small research models in all geographic regions for Research Model Services and for Cell solutions business. The RMS growth rate was below the high single-digit target for the year due primarily to RMS China, while demand for small models remain strong, the timing of NHP shipments to clients in China impacted the first quarter growth rate.

RMS 收入為 1.998 億美元，比 2022 年第一季度有機增長 6.8%。RMS 部門受益於研究模型服務和細胞解決方案業務在所有地理區域對小型研究模型的廣泛需求。 RMS 增長率低於今年的高個位數目標，這主要是由於 RMS 中國，雖然對小型模型的需求依然強勁，但 NHP 向中國客戶發貨的時間影響了第一季度的增長率。

Since exports from China were shut down at the beginning of the pandemic, we have been selling a relatively small number of NHPs locally to clients since we were unable to utilize these models in our global Safety Assessment operations.

由於在大流行開始時中國的出口被關閉，我們一直在當地向客戶銷售數量相對較少的 NHP，因為我們無法在我們的全球安全評估業務中使用這些模型。

We expect the RMS growth rate to meaningfully improve in the second quarter as the NHPs are shipped in China and we continue to expect RMS to deliver high single-digit organic revenue growth in 2023. Outside of China, revenue growth for small research models in North America and Europe remains strong. driven by healthy volume increases in North America and continued pricing gains globally. We believe demand for research models is an excellent indicator of the health and stability of early-stage research activity. The demand and pricing trends this year demonstrate that clients are continuing to move their research programs forward, which will drive solid RMS revenue growth.

我們預計，隨著 NHP 在中國的出貨，RMS 增長率在第二季度將顯著提高，我們繼續預計 RMS 將在 2023 年實現高單位數的有機收入增長。在中國以外，北方小型研究模型的收入增長美國和歐洲依然強勁。受北美銷量健康增長和全球價格持續上漲的推動。我們相信對研究模型的需求是早期研究活動健康和穩定的一個很好的指標。今年的需求和定價趨勢表明，客戶正在繼續推進他們的研究計劃，這將推動 RMS 收入穩步增長。

From a services perspective, revenue growth was also broad-based with the Insourcing Solutions and GEMS businesses leading the way. Insourcing Solutions, or IS growth continued to be primarily driven by our CRADL operations, which offer flexible vivarium rental space at Charles River sites to both small and large biopharmaceutical clients. Having expanded significantly last year through both the acquisition of Explora BioLabs, and by adding 9 CRADL and Explora sites, we are now focused on ramping up utilization of the new sites as well as continuing to moderately add new sites.

從服務的角度來看，收入增長的基礎也很廣泛，其中 Insourcing Solutions 和 GEMS 業務處於領先地位。 Insourcing Solutions，或 IS 的增長繼續主要由我們的 CRADL 業務推動，該業務在 Charles River 站點為小型和大型生物製藥客戶提供靈活的 vivarium 租賃空間。去年通過收購 Explora BioLabs 並增加了 9 個 CRADL 和 Explora 站點，我們實現了顯著擴張，現在我們專注於提高新站點的利用率，並繼續適度增加新站點。

This will generate a runway for continued robust revenue growth and margin enhancement opportunities for CRADL. Our traditional IS model, which provides staffing and vivarium management at our client sites still resonates with clients. It has historically had a larger academic and government client base. However, commercial clients are also seeking the benefits of driving cost savings and greater operational efficiency by allowing us to manage their internal vivariums. We were pleased to add a new meaningful commercial biopharmaceutical contract in the first quarter.

這將為 CRADL 帶來持續強勁的收入增長和利潤率提昇機會。我們傳統的 IS 模型在我們的客戶站點提供人員配置和動物飼養管理，仍然引起客戶的共鳴。它歷來擁有更大的學術和政府客戶群。然而，商業客戶也在尋求通過允許我們管理他們的內部動物飼養場來推動成本節約和提高運營效率的好處。我們很高興在第一季度增加了一份新的有意義的商業生物製藥合同。

We also continue to expand our GEMS business in North America to accommodate increasing demand from both biopharmaceutical and academic clients as they partner with us to maintain their proprietary genetically modified model colonies. These models are playing an increasingly critical role as drug research becomes more complex with a shift to oncology, rare disease and cell and gene therapies.

我們還繼續擴大我們在北美的 GEMS 業務，以滿足生物製藥和學術客戶日益增長的需求，因為他們與我們合作維護他們專有的轉基因模型菌落。隨著藥物研究隨著向腫瘤學、罕見疾病以及細胞和基因療法的轉變而變得更加複雜，這些模型發揮著越來越重要的作用。

In the first quarter, the RMS operating margin decreased by 650 basis points to 23.4%. Most of the decline was driven by the temporary headwind related to timing of NHP shipments within China. Revenue mix was also a factor due in part to the Explora acquisition in April 2022 and the ramp-up of utilization in our CRADL and Explora operations, which were expanded last year. We expect the RMS operating margin to meaningfully improve in the second quarter as these headwinds subside.

第一季度，RMS 營業利潤率下降 650 個基點至 23.4%。下降的主要原因是與中國境內 NHP 發貨時間相關的暫時逆風。收入組合也是一個因素，部分原因是 2022 年 4 月對 Explora 的收購，以及我們去年擴大的 CRADL 和 Explora 業務的利用率提高。隨著這些逆風消退，我們預計第二季度 RMS 營業利潤率將顯著提高。

Revenue for the Manufacturing Solutions segment was $167.3 million, a decrease of 1.8% on an organic basis compared to the first quarter of last year. The decrease was driven by the CDMO and Biologics Testing businesses, partially offset by a solid performance for the Microbial Solutions business. As we mentioned in February, we expected the segment's year-over-year revenue comparison would be challenging due to commercial readiness milestones in the CDMO business and COVID vaccine testing revenue in the Biologics Testing business.

製造解決方案部門的收入為 1.673 億美元，與去年第一季度相比有機下降 1.8%。這一下降是由 CDMO 和生物製品測試業務推動的，部分被微生物解決方案業務的穩健表現所抵消。正如我們在 2 月份提到的那樣，由於 CDMO 業務的商業準備里程碑和生物製品測試業務的 COVID 疫苗測試收入，我們預計該部門的同比收入比較將具有挑戰性。

Both of which occurred in the first quarter of last year. We believe these factors will be largely anniversaried beginning in the second quarter. In addition to these factors, the Biologics Testing business experienced a slower start to the year. Testing volume tends to be seasonally softer in the first quarter. With lower sample volume reflecting reduced client manufacturing activity over the holidays.

兩者都發生在去年第一季度。我們相信這些因素將在第二季度開始基本消失。除這些因素外，生物製品測試業務今年開局較慢。第一季度的測試量在季節性上趨於疲軟。較低的樣本量反映了假期期間客戶製造活動的減少。

This year, we also experienced lower-than-anticipated volumes, particularly for viral clearance and cell banking services. Because clients seem to be prioritizing their programs and more budget focused at the beginning of the year.

今年，我們的業務量也低於預期，尤其是在病毒清除和細胞銀行服務方面。因為客戶似乎在年初優先考慮他們的計劃和更多預算。

Microbial Solutions delivered a solid first quarter performance led by the continued strength of the Accugenix microbial identification platform due to both instrument placements and demand for our testing services. Our advantage is as the only provider who can offer a comprehensive solution for rapid manufacturing and quality-control testing continues to resonate with our clients.

由於儀器放置和對我們測試服務的需求，微生物解決方案在 Accugenix 微生物鑑定平台的持續實力的帶動下，第一季度表現穩健。我們的優勢在於，作為唯一一家能夠為快速製造和質量控制測試提供全面解決方案的供應商，我們的客戶不斷產生共鳴。

The cell and gene therapy CDMO business continued to make progress towards its targeted growth rate goal. As expected, the growth rate was affected by the comparison to the commercial readiness milestones paid in the first quarter of last year, but the initiatives that we have implemented to improve the performance of our CDMO business continue to gain traction and earn positive feedback from clients. We believe that the success of these actions and an increasing sales funnel will result in a marked improvement in the CDMO growth rate in the second quarter.

細胞和基因治療 CDMO 業務繼續朝著其既定增長率目標取得進展。正如預期的那樣，增長率受到與去年第一季度支付的商業準備里程碑比較的影響，但我們為提高 CDMO 業務績效而實施的舉措繼續獲得牽引力並贏得客戶的積極反饋.我們相信，這些行動的成功和不斷增加的銷售渠道將導致第二季度 CDMO 增長率的顯著提高。

Now we expect the CDMO business will drive a rebound in the Manufacturing segment organic growth rate over the course of the year. The Manufacturing segment's first quarter operating margin was 13.7%, a significant decline from 33.1% in the first quarter of last year. The decline was primarily related to lower operating margins in each of the segment's business units, particularly CDMO and Biologics Testing. This was driven largely by the prior year headwinds and the slower start in the Biologics Testing business that I discussed as well as an asset impairment in the segment.

現在我們預計 CDMO 業務將在今年推動製造部門有機增長率的反彈。製造部門第一季度的營業利潤率為 13.7%，較去年第一季度的 33.1% 大幅下降。下降主要與該部門每個業務部門的營業利潤率下降有關，尤其是 CDMO 和生物製品測試部門。這主要是由於前一年的逆風和我討論過的生物製品測試業務的起步較慢以及該部門的資產減值。

As anticipated, end market dynamics have moderated somewhat in 2023, but it's important to reiterate that our client base remains stable and resilient, particularly biotechs. These companies have now become the innovation engine for the entire biopharmaceutical industry with a number of biopharma companies with active pipelines doubling over the past 10 years.

正如預期的那樣，終端市場動態在 2023 年有所緩和，但重要的是要重申我們的客戶群保持穩定和彈性，尤其是生物技術。這些公司現已成為整個生物製藥行業的創新引擎，在過去 10 年中，許多擁有活躍管線的生物製藥公司翻了一番。

We believe the early-stage research that we conduct is instrumental to our biotech clients achievement of the important milestones that enable them to secure additional funding, and therefore, they will continue to partner with Charles River for our flexible and efficient platform that accelerates their therapeutic innovation. These factors, coupled with the strength and scale of our DSA backlog and the substantial visibility that it provides will enable us to better withstand any near-term fluctuation in the market.

我們相信，我們進行的早期研究有助於我們的生物技術客戶實現重要的里程碑，使他們能夠獲得額外的資金，因此，他們將繼續與 Charles River 合作，打造我們靈活高效的平台，加速他們的治療創新。這些因素，再加上我們 DSA 積壓的實力和規模，以及它提供的大量可見性，將使我們能夠更好地承受市場的任何短期波動。

We believe the power of our unique portfolio differentiates us today more than ever -- from other companies that provide R&D support services to the biopharmaceutical industry. We are continuing to further distinguish ourselves scientifically by adding capabilities in biologics and cell and gene therapies. By investing in technology partnerships to bring cutting-edge tools to our clients and by building greater digital connectivity with our clients, including through the launch of Apollo in March.

我們相信，我們獨特的產品組合的力量使我們今天比以往任何時候都更加與眾不同——有別於為生物製藥行業提供研發支持服務的其他公司。我們將繼續通過增加生物製劑、細胞和基因療法的能力，進一步在科學上脫穎而出。通過投資技術合作夥伴關係，為我們的客戶帶來尖端工具，並與我們的客戶建立更強大的數字連接，包括通過 3 月份推出的 Apollo。

Apollo will revolutionize client access to real-time study data, planning and cost estimates and other self-service tools. To conclude, I'd like to thank our employees for their exceptional work and commitment and our clients and shareholders for their continued support. Now Flavia will provide additional details on our first quarter financial performance and 2023 guidance.

Apollo 將徹底改變客戶對實時研究數據、計劃和成本估算以及其他自助服務工具的訪問。最後，我要感謝我們的員工所做的出色工作和承諾，以及我們的客戶和股東一直以來的支持。現在，Flavia 將提供有關我們第一季度財務業績和 2023 年指導的更多詳細信息。

Thank you, Jim. And good morning. Before I begin, may I remind you that I'll be speaking primarily to non-GAAP results, which exclude amortization and other acquisition-related adjustments, costs related primarily to our global efficiency initiatives, gains or losses from our venture capital and other strategic investments and certain other items.

謝謝你，吉姆。早上好。在開始之前，請允許我提醒您，我將主要討論非 GAAP 結果，其中不包括攤銷和其他與收購相關的調整、主要與我們的全球效率計劃相關的成本、我們的風險投資和其他戰略的收益或損失投資和某些其他項目。

Many of my comments will also refer to organic revenue growth, which excludes the impact of acquisitions, divestitures and foreign currency translation. We are pleased with our first quarter results, which included revenue and earnings per share well above the outlook that we provided in February.

我的許多評論也會提到有機收入增長，其中不包括收購、資產剝離和外幣換算的影響。我們對第一季度的業績感到滿意，其中包括收入和每股收益遠高於我們在 2 月份提供的展望。

We delivered strong organic revenue growth of 15.4%, wildly outperforming our prior expectations. Higher revenue and a solid operating performance contributed to earnings per share of $2.78, a 1.1% increase over the prior year compared to the outlook we provided in February of a mid-single-digit decline.

我們實現了 15.4% 的強勁有機收入增長，大大超出了我們之前的預期。更高的收入和穩健的經營業績促成了每股收益 2.78 美元，比上年增長 1.1%，而我們在 2 月份提供的中等個位數下降前景。

As Jim mentioned, we have narrowed our previous revenue growth and non-GAAP earnings per share guidance to reflect the strong first quarter performance. We now expect to deliver reported revenue growth of 2% to 4.5% and organic revenue growth of 5% to 7.5% for the full year as well as non-GAAP earnings per share in a range of $9.90 to $10.90 for the full year.

正如吉姆所提到的，我們已經縮小了之前的收入增長和非 GAAP 每股收益指引，以反映第一季度的強勁表現。我們現在預計全年報告收入增長 2% 至 4.5%，有機收入增長 5% 至 7.5%，全年非 GAAP 每股收益在 9.90 美元至 10.90 美元之間。

Our 2023 revenue guidance ranges continue to reflect the estimated impact from the NHP supply constraints, resulting in wider guidance ranges to account for multiple outcomes with respect to our mitigation plans. We are expecting stronger revenue growth rates in the first half of 2023 due to both the comparison to last year when growth accelerated throughout the year, as well as the anticipated gating of the NHP supply impact, which will principally impact the second half.

我們的 2023 年收入指導範圍繼續反映 NHP 供應限制的估計影響，從而導致更寬的指導範圍以考慮與我們的緩解計劃相關的多種結果。我們預計 2023 年上半年的收入增長率會更高，因為與全年增長加速的去年相比，以及 NHP 供應影響的預期門控，這將主要影響下半年。

Our segment outlook for 2023 revenue growth remains largely unchanged, as noted on Slide 34. We also continue to expect that the consolidated operating margin will be flat to lower versus prior year depending on the ultimate success of our plans to mitigate the NHP supply constraints.

正如幻燈片 34 中所述，我們對 2023 年收入增長的細分前景基本保持不變。我們還繼續預計，綜合營業利潤率將與上一年持平或更低，這取決於我們緩解 NHP 供應限制的計劃的最終成功。

Unallocated corporate costs were favorable in the quarter totaling 4.3% of total revenue, compared to 5% of revenue in the first quarter of last year. The decrease was primarily the result of timing of health and fringe costs, which are expected to normalize over the course of the year. Despite the favorability in the first quarter, we expect unallocated corporate costs to total approximately 5% of revenue for the full year, which is similar to 2022.

本季度未分配的企業成本佔總收入的 4.3% 是有利的，而去年第一季度佔收入的 5%。減少的主要原因是健康和附加費用的時間安排，預計這些費用將在今年恢復正常。儘管第一季度表現良好，但我們預計全年未分配的企業成本總額將佔收入的 5% 左右，與 2022 年相似。

The first quarter tax rate was 21.7% approximately 490 basis points higher year-over-year as anticipated. The increase was primarily due to a lower benefit from stock-based compensation. We continue to expect our full year tax rate will be in the range of 22.5% to 23.5%, which is unchanged from our previous outlook.

第一季度稅率為 21.7%，與預期相比同比高出約 490 個基點。增加的主要原因是股票薪酬帶來的收益減少。我們繼續預計我們的全年稅率將在 22.5% 至 23.5% 的範圍內，這與我們之前的展望沒有變化。

Total adjusted net interest expense was $33.6 million in the first quarter, essentially flat on a sequential basis. The significant year-over-year increase from $20.4 million in the first quarter of 2022, which compressed earnings growth in the quarter, primarily reflected meaningfully higher interest rates as a result of the Federal Reserve's monetary policy actions since March of 2022.

第一季度調整後的淨利息支出總額為 3360 萬美元，環比基本持平。與 2022 年第一季度的 2040 萬美元相比，同比大幅增長壓縮了該季度的收益增長，這主要反映了美聯儲自 2022 年 3 月以來採取的貨幣政策行動導致利率大幅上升。

For the year, we continue to expect net interest expense of $133 million to $137 million. As a reminder, nearly 3/4 of our $2.75 billion debt at the end of the first quarter was at a fixed rate. With regards to the remaining variable rate portion of our debt, our outlook can accommodate an additional 50 basis point increase in rates by the Federal Reserve during the remainder of 2023. At the end of the first quarter, our gross leverage ratio was 2.2x, and our net leverage ratio was 2.1x.

今年，我們繼續預計淨利息支出為 1.33 億美元至 1.37 億美元。提醒一下，第一季度末我們 27.5 億美元的債務中有近 3/4 是固定利率的。關於我們債務的剩餘可變利率部分，我們的前景可以容納美聯儲在 2023 年剩餘時間內將利率再提高 50 個基點。第一季度末，我們的總槓桿率為 2.2 倍，我們的淨槓桿率為 2.1 倍。

Free cash flow was $2.5 million in the first quarter compared to $22.2 million last year, with higher capital expenditures driving the decrease. As a reminder, the first quarter is a seasonally softer period for free cash flow generation. Capital expenditures were $106.9 million in the first quarter compared to $80.5 million last year, due primarily to ongoing expansion projects to support continued growth across our business.

第一季度自由現金流為 250 萬美元，而去年為 2220 萬美元，資本支出增加導致現金流下降。提醒一下，第一季度是自由現金流產生的季節性疲軟時期。第一季度的資本支出為 1.069 億美元，而去年同期為 8050 萬美元，這主要是由於為支持我們業務的持續增長而進行的持續擴張項目。

Today, we're initiating 2023 guidance for free cash flow and capital expenditures. We expect free cash flow to be in the range of $330 million to $380 million, which is flat to a 15% increase from $330 million in 2022. CapEx is expected to be slightly below our recently stated target of 9% of revenue. At $340 million to $360 million this year. The lower capital intensity reflects our disciplined approach to capital deployment. We are investing in our business based on the growth potential of each business unit and are modifying certain projects in light of the temporary disruption from the NHP supply constraints. Normalizing demand trends will result in less capital required than we previously anticipated.

今天，我們啟動了 2023 年自由現金流和資本支出指南。我們預計自由現金流將在 3.3 億美元至 3.8 億美元之間，與 2022 年的 3.3 億美元持平或增長 15%。預計資本支出將略低於我們最近宣布的佔收入 9% 的目標。今年為 3.4 億至 3.6 億美元。較低的資本密集度反映了我們嚴格的資本配置方法。我們根據每個業務部門的增長潛力對我們的業務進行投資，並根據 NHP 供應限製造成的暫時中斷修改某些項目。需求趨勢正常化將導致所需資金少於我們之前的預期。

A summary of our 2023 financial guidance can be found on Slide 40. Looking ahead to the second quarter, we expect year-over-year reported revenue growth in a high single-digit range and organic revenue growth of 10% or better. Reflecting continued strong growth trends across many of our businesses.

我們的 2023 年財務指導摘要可以在幻燈片 40 上找到。展望第二季度，我們預計報告的收入同比增長將在高個位數範圍內，有機收入增長將達到 10% 或更高。反映了我們許多業務的持續強勁增長趨勢。

We expect the NHP supply issue will have only a limited impact on the second quarter DSA growth rate as we're able to schedule flexibly and expect to leverage the strength of our backlog to slot in other studies when necessary. Earnings per share are expected to decline at a mid-single-digit rate compared to $2.77 in the second quarter of last year, as the higher tax rate and increased interest expense will continue to restrict the year-over-year earnings growth rate.

我們預計 NHP 供應問題對第二季度 DSA 增長率的影響有限，因為我們能夠靈活安排時間，並期望在必要時利用我們積壓的實力來進行其他研究。與去年第二季度的 2.77 美元相比，每股收益預計將以中個位數的速度下降，因為更高的稅率和增加的利息支出將繼續限制同比收益增長率。

In closing, we're pleased with our first quarter performance and are confident about our prospects for the second quarter as well as our ability to achieve our full year financial outlook. Even as macroeconomic and biopharmaceutical market conditions evolve, we will continue to execute our strategy of expanding our business to both meet the needs of our clients and to enhance our position as the scientific partner of choice to accelerate biomedical research and therapeutic innovation. Thank you.

最後，我們對第一季度的業績感到滿意，並對第二季度的前景以及實現全年財務展望的能力充滿信心。即使在宏觀經濟和生物製藥市場條件不斷變化的情況下，我們仍將繼續執行擴大業務的戰略，以滿足客戶的需求，並鞏固我們作為加速生物醫學研究和治療創新的首選科學合作夥伴的地位。謝謝。

That concludes our comments. We will now take your questions.

我們的評論到此結束。我們現在將回答您的問題。

(Operator Instructions) We'll take our first question from Eric Coldwell with Baird.

（操作員說明）我們將與 Baird 一起回答 Eric Coldwell 的第一個問題。

Wanted to just clarify. Last quarter, you highlighted the 200 to 400 basis point potential impact from NHPs this year. I may have missed it, but I didn't see an update on that commentary. It looks like Q1 probably did a little better than the Street expected, 2Q looks better than the Street expected. I'm just curious if your range of potential impact has changed or if it's just shifted totally out to the third and fourth quarter? That's the first question. I have another.

只是想澄清一下。上個季度，您強調了今年 NHP 的 200 至 400 個基點的潛在影響。我可能錯過了它，但我沒有看到該評論的更新。看起來第一季度的表現可能比華爾街預期的要好一些，第二季度看起來比華爾街預期的要好。我只是好奇你的潛在影響範圍是否發生了變化，或者它是否只是完全轉移到第三和第四季度？這是第一個問題。我還有一個。

Eric, it's Flavia. Thank you for your question. The range is -- of the 200 to 400 basis points of the supply NHP impact remains consistent with what we provided earlier in the year.

埃里克，是弗拉維亞。謝謝你的問題。範圍是 - 供應 NHP 影響的 200 到 400 個基點與我們今年早些時候提供的一致。

Okay. And just maybe a bigger picture question on this topic. Has any government agency actually blocked importation or exportation or changed any policy? Or are all of your actions to this point, very much proactive and internally driven decisions to just be as safe as possible.

好的。也許只是關於這個主題的一個更大的問題。是否有任何政府機構實際阻止進口或出口或改變任何政策？還是您到目前為止的所有行動，非常主動和內部驅動的決策都是為了盡可能安全。

Eric, Certainly, it's prudent for us not to bring NHPs at least from Cambodia into the U.S. And I would say that the U.S. government is -- is fine with that strategy. So they're certainly not supportive of us doing otherwise. So we're going to cooperate and we're going to run our business with multiple supply sources doing a work in multiple sites and try to work hard to have new testing protocols that show parentage accepted and used universally, we would hope.

埃里克，當然，對我們來說，至少不要將 NHP 從柬埔寨帶入美國是明智的。我會說美國政府對這一戰略很好。所以他們肯定不支持我們不這樣做。因此，我們將合作，我們將與多個供應來源一起開展業務，在多個地點開展工作，並努力工作以製定新的測試協議，以顯示親子關係被普遍接受和使用，我們希望如此。

We're quite confident in our ability to do that. A little bit difficult for us to have much impact on the cadence of how quickly that goes and what the receptivity will be. But we feel good about the science behind that. We actually feel good about all of our supply sources. And we do the best we can to accommodate for the situation as a result of that we should have slightly better performance in the second quarter than what is embedded in our guidance.

我們對自己有能力做到這一點很有信心。對我們來說，要對節奏的快慢和接受度產生多大影響有點困難。但我們對背後的科學感到滿意。我們實際上對我們所有的供應來源都感覺良好。我們會盡最大努力適應這種情況，因為我們在第二季度的表現應該比我們的指導中嵌入的表現略好。

But it's still fluid. And I was saying the fact that I think we have good program and plan to satisfy the needs and demands of our clients. There are things that continue to [be out of our] control, which is why we have such a -- while we continue to have a guidance range that we do and we'll continue to give you as much information as we can, as things if and as things change.

但它仍然是流動的。我說的是我認為我們有很好的計劃和計劃來滿足客戶的需求。有些事情繼續 [超出我們] 的控制範圍，這就是為什麼我們有這樣的 - 同時我們繼續有我們所做的指導範圍，我們將繼續為您提供盡可能多的信息，因為如果事情發生變化，事情就會發生變化。

Okay. I'll let others jump in.

好的。我會讓其他人跳進去。

And we'll take our next question from Derik De Bruin with Bank of America.

我們將接受來自美國銀行的 Derik De Bruin 的下一個問題。

Jim, 2 questions. I think the first one is, are the Cambodian NHPs currently being sold else where? Is the -- supply that was destined to the U.S. have been going into China, or going to China. And then if you -- assuming the situation does get resolved, is it going to be difficult to get those back to the U.S., i.e., are you going to have to pay a lot more money to get them there? I'm just sort of curious where are the supplies going right now? And can you get them back?

吉姆，2個問題。我認為第一個是，柬埔寨的 NHP 目前是否在其他地方出售？是運往美國的供應一直在進入中國，還是進入中國。然後，如果你 - 假設情況確實得到解決，將它們帶回美國是否會很困難，也就是說，你是否需要支付更多的錢才能將它們送回美國？我只是有點好奇物資現在去哪兒了？你能把它們找回來嗎？

So we don't have any indication that the supplies are going to China. Of course, we did not get animals from all of the suppliers there, only one principal one. So we don't categorically know, but I would doubt that China has lots of NHPs themselves, which is how this whole thing started. We're doing the best we can to accommodate the demand by doing work in multiple geographies within CRL. We're as confident as we can, we can show parentage if we -- as the discussion continues, and we have clarity and sort of cooperation with the various supply sources so I don't think this is a situation of getting that supply back from some place that they'll be gone forever.

所以我們沒有任何跡象表明這些物資將運往中國。當然，我們並沒有從那裡的所有供應商那裡得到動物，只有一個主要的。所以我們不能絕對知道，但我懷疑中國自己有很多 NHP，這就是整個事情的開始。我們正在盡最大努力通過在 CRL 的多個地區開展工作來滿足需求。我們盡可能有信心，如果我們——隨著討論的繼續，我們可以證明出身，我們與各種供應來源有明確的合作，所以我認為這不是恢復供應的情況從某個地方，他們將永遠消失。

I think this is a transitory situation, sort of an unusual one, frankly. I just want to reiterate for the record that we're cooperating in an investigation, providing information. I think we're cooperating really well. We're not a target of investigation, and we don't know whether our supplier is, but we can just tell you that we've been there, we think the place is well run, pursuant to the sort of studies oversight that's required for purpose bred. We also think that the veterinary oversight and nutritional oversight and transportation oversight and the [farm] that we utilize has done really well.

坦率地說，我認為這是一種暫時的情況，有點不尋常。我只想鄭重重申，我們正在合作調查，提供信息。我認為我們合作得非常好。我們不是調查的目標，我們不知道我們的供應商是否是，但我們可以告訴你我們去過那裡，我們認為這個地方運行良好，根據所需的那種研究監督目的培育。我們還認為獸醫監督、營養監督和運輸監督以及我們使用的 [農場] 做得非常好。

So given our experience with farms all over the world, including farms that we had ourselves years ago and started on our own, we think it's a good supply. So again, just to go back to my answer to the first question, we're being very responsive on a timely basis with the folks that are asking us for information but we have very little control over the pace and response and how we move forward.

因此，鑑於我們在世界各地的農場的經驗，包括我們多年前擁有並自己開始的農場，我們認為這是一個很好的供應。因此，再次回到我對第一個問題的回答，我們對那些向我們詢問信息的人非常及時地做出回應，但我們幾乎無法控制步伐和回應以及我們前進的方式.

But I would be surprised and disappointed if Cambodia doesn't continue to be a source of supply. And as you know, really well given your scientific background, not doing a sufficient amount of large molecule work and moving these drugs through the FDA, without using NHPs.

但如果柬埔寨不再是供應來源，我會感到驚訝和失望。正如你所知，鑑於你的科學背景，沒有做足夠多的大分子工作並通過 FDA 移動這些藥物，而不使用 NHPs。

So it's not optional. And since this is the largest supply source, it's something that needs to be rectified in as timely basis as possible.

所以它不是可選的。由於這是最大的供應來源，因此需要盡快糾正。

Great I'll stick to one question.

太好了，我會堅持一個問題。

We'll take our next question from Sandy Draper with Guggenheim.

我們將與古根海姆一起接受 Sandy Draper 的下一個問題。

I guess maybe just thinking about the quarter, obviously, strong -- strong quarter total, that sort of looks like we as well as the Street sort of mismodeled DSA was much stronger than we expected. RMS, pretty much in line manufacturing lower. I'm just curious, I know you don't give quarterly guidance by segment, but was this type of result generally in line? It sounds like maybe you're a little bit surprised by DSA.

我想也許只是在考慮這個季度，很明顯，強勁 - 強勁的季度總數，看起來我們以及華爾街那種錯誤建模的 DSA 比我們預期的要強大得多。 RMS，幾乎在線製造較低。我只是好奇，我知道你沒有按部門給出季度指導，但這種類型的結果總體上是一致的嗎？聽起來您可能對 DSA 感到有點驚訝。

Just trying to think about how these results compare and so how we should be thinking about your commentary on full year growth rate by segment, are those still appropriate or based on the first quarter results, should we be sort of rethinking stronger DSA but lighter manufacturing and RMS.

只是想想想這些結果如何比較，以及我們應該如何考慮您對按部門劃分的全年增長率的評論，這些評論是否仍然合適或基於第一季度的結果，我們是否應該重新考慮更強大的 DSA 但更輕的製造業和有效值。

We'll both answer this. I would say we were not surprised. As we reported all of last year and probably the prior year, demand for safety assessment was unrelenting and growing and well in excess of a year, in some cases, 1.5 years. So strong demand, this NHP disruption really was not a factor. RMS has been growing really nicely for several years now. I don't know whether anybody remembers, I hope you did, but if not, we've reminded you. We knew that manufacturing would be behind the prior year because of some milestone payments that we -- substantial milestone payments we had in the first quarter with our CDMO business and COVID work for biologics. So quarter track pretty much as we anticipated.

我們都會回答這個問題。我想說我們並不感到驚訝。正如我們去年全年以及可能是前一年所報告的那樣，對安全評估的需求一直在持續增長，並且遠遠超過一年，在某些情況下甚至超過 1.5 年。如此強勁的需求，這種 NHP 中斷確實不是一個因素。幾年來，RMS 的發展非常好。我不知道是否有人記得，我希望你記得，但如果不記得，我們已經提醒過你。我們知道製造將落後於前一年，因為我們有一些里程碑付款——我們在第一季度通過我們的 CDMO 業務和 COVID 生物製品工作獲得了大量里程碑付款。所以四分之一的軌道與我們預期的差不多。

We're obviously pleased with that level of growth. The Safety Assessment business is a very large part of what we do. As you know, and so it has had a really meaningful impact on our results. I'll let Flavia answer the rest of the year question.

我們顯然對這種增長水平感到滿意。安全評估業務是我們工作的很大一部分。如您所知，它對我們的結果產生了真正有意義的影響。我會讓 Flavia 回答今年剩餘時間的問題。

And Sandy, I think we always talked about how our business is not linear and it's not linear in totality and definitely not at a segment level either. And so to Jim's point, RMS, we reaffirmed our full year guidance of high single digits. We talked a little bit about some timing events in RMS in the first quarter. That will normalize in the second quarter.

桑迪，我想我們總是談論我們的業務是如何非線性的，它在整體上也不是線性的，而且在細分層面上也絕對不是。因此，對於 Jim 的觀點，RMS，我們重申了我們全年的高個位數指導。我們在第一季度討論了 RMS 中的一些計時事件。這將在第二季度正常化。

DSA was very, very strong in the first quarter. As Jim pointed out, continued strength following the second half of 2022, I also commented that the growth will modulate throughout the year, both given the comp as the growth accelerated in 2022, you'd have a comp dynamic that will impact 2023. And we reaffirmed our guidance of low to mid-single digits for the year.

DSA 在第一季度非常非常強勁。正如 Jim 指出的那樣，2022 年下半年之後將持續走強，我還評論說全年的增長將有所調整，考慮到 2022 年增長加速的競爭，你將擁有一個影響 2023 年的競爭動態。而且我們重申了我們對今年低到中個位數的指導。

And manufacturing solutions, as Jim pointed out, had a couple of headwinds in the first quarter with COVID vaccine volumes that are no longer existing as well as the CDMO milestones and we talked a little bit about a slower start in Biologic Solutions. So we expanded the guidance range a little bit to now include high single digit to low double digit for the year.

正如 Jim 指出的那樣，製造解決方案在第一季度遇到了一些不利因素，包括 COVID 疫苗數量不再存在以及 CDMO 里程碑，我們談到了生物解決方案的起步較慢。因此，我們稍微擴大了指導範圍，現在包括當年的高個位數到低兩位數。

The previous guidance was low double digits. So we just extended that range.

之前的指導是低兩位數。所以我們只是擴大了這個範圍。

Sandy, it's worth reminding you and everybody else listening what the cadence was last year. Flavia's point, right? So we had a safety, we had a slow first half of the year and a really strong second half of the year, I think some of our shareholders didn't think that, that was going to happen. We again, 26% growth rate, I think, in the third quarter. So we're going to have these year-over-year comparisons less tough in the first half, tougher in the second half, some impact from the NHPs, but would have a cadence anyway.

Sandy，值得提醒你和其他聽過去年節奏的人。弗拉維亞的觀點，對吧？所以我們有安全感，上半年表現緩慢，下半年表現強勁，我認為我們的一些股東不認為會發生這種情況。我認為，我們在第三季度再次增長了 26%。因此，我們將在上半年進行這些同比比較，不那麼艱難，在下半年更加艱難，NHP 會產生一些影響，但無論如何都會有節奏。

Linearity is impossible for us to design or even predict studies sort of start when they start and when they had. But as always, you want to listen to our guidance for full year, particularly in the safety business.

我們不可能設計甚至預測研究何時開始以及何時開始的線性。但一如既往，你想听聽我們全年的指導，特別是在安全業務方面。

That's really helpful.

這真的很有幫助。

And we'll take our next question from Patrick Donnelly with Citi.

我們將從花旗的 Patrick Donnelly 那裡回答下一個問題。

You have Olivia on for Patrick. So just 1 more on the NHPs. It sounds like you're making progress on the test -- is to determine parentage? I guess how long do you anticipate the rollout of that test, once you have, it will take throughout your supply and anything that we can expect there? And I'll leave it at that.

你讓奧利維亞代替帕特里克。所以只有 1 個關於 NHP。聽起來你在考試中取得了進步——是為了確定親子關係？我想您預計該測試的推出需要多長時間，一旦完成，它將佔用您的整個供應以及我們在那裡可以期待的任何東西？我會把它留在那裡。

No more NHP question. Just kidding. It's really difficult to say what the rollout is. The science is not trivial, but relatively straightforward. It's not all that complicated. We have several places that we could do it or people could do it for us or all of the above. And we're quite confident from what we know that our supplier -- he has purpose breading these animals according to all of our expectations, and we can demonstrate that.

沒有更多的 NHP 問題。只是在開玩笑。真的很難說推出是什麼。科學不是微不足道的，而是相對簡單的。並沒有那麼複雜。我們有幾個地方可以做，或者人們可以為我們做或以上所有。我們非常有信心，據我們所知，我們的供應商 - 他有目的根據我們的所有期望為這些動物提供麵包，我們可以證明這一點。

It's just the communications is just -- as I said a couple of times earlier, is a little bit slower than we would like. We understand that, and we'll do the best we can. So we'll give you clarity when we have it. I would say we -- so we've been very responsive in terms of coming up with the program, providing that to the various authorities, they've looked them over, and we just continue to go back and forth.

只是溝通只是 - 正如我之前說過幾次，比我們想要的要慢一點。我們明白這一點，我們會盡力而為。所以當我們有了它時，我們會給你清晰的。我會說我們 - 所以我們在提出該計劃方面一直非常敏感，將其提供給各個當局，他們已經審查了他們，我們只是繼續來回走動。

And so as a parallel strategy, we're using our international infrastructure and we'll continue to always held us in good stead in all of our businesses, but in this case, particularly in safety that we do the work in so many geographic [locals] that it really helps with the current situation when things are a little more complicated in the U.S.

因此，作為一項平行戰略，我們正在使用我們的國際基礎設施，我們將繼續在我們所有的業務中始終保持良好的地位，但在這種情況下，特別是在安全方面，我們在如此多的地理區域開展工作 [當地人]，當美國的情況稍微複雜一些時，這確實有助於解決目前的情況。

But we're confident that we can prove it and demonstrate it scientifically without a shadow of a doubt, at some point, that will be kind of standard and as I said earlier, we'd really like to come up with something that works for the whole industry and maybe not necessarily just for CRL.

但我們相信我們可以毫無疑問地證明它並科學地證明它，在某些時候，這將成為一種標準，正如我之前所說，我們真的很想提出一些對整個行業，也許不一定只針對 CRL。

And if I can just add to Jim's point, we made progress on scientifically identifying how the test can be done. It will take some time to operationalize, given, obviously, the supply logistics and everything. So it is as we continue to work with government authorities, it will take some time to get this off the ground.

如果我可以補充 Jim 的觀點，我們在科學確定如何進行測試方面取得了進展。考慮到供應物流和一切，顯然需要一些時間才能投入使用。因此，隨著我們繼續與政府當局合作，這需要一些時間才能開始。

Appreciate the color there.

欣賞那裡的顏色。

And we'll take our next question from Max Smock with William Blair.

我們將與 William Blair 一起接受 Max Smock 的下一個問題。

So I wanted to drill down on a decrease in DSA backlog because I think there's been a fair level of concern around some of the perhaps lower book-to-bills we've seen here in this part of the business. What are you seeing in terms of proposals and bookings so far here in the second quarter?

所以我想深入了解 DSA 積壓的減少，因為我認為我們在這部分業務中看到的一些可能較低的訂單出貨量引起了相當大的關注。到目前為止，您在第二季度的提案和預訂方面看到了什麼？

Are you expecting backlog to continue to get work down here over the next couple of quarters given the tougher macro environment? And then digging ahead, where do you think you need to see backlog in this year in order to support double-digit organic growth for the DSA segment in 2024?

鑑於更嚴峻的宏觀環境，您是否預計未來幾個季度積壓工作會繼續減少？然後深入挖掘，您認為今年需要在哪些方面看到積壓，以支持 DSA 部門在 2024 年實現兩位數的有機增長？

So we'll both comment on this. Proposals and bookings continue to be strong, less strong than last year, which was a very unusual year. Enjoyable, but unusual. And you have a combination of factors. But I would say the principal factor is you have clients that at a certain level of waiting to start this study, it just becomes problematic for them to plan their business and to get drugs into the clinic and ultimately into the market.

所以我們都會對此發表評論。建議和預訂繼續保持強勁，但不如去年強勁，去年是非常不尋常的一年。令人愉快，但不尋常。你有多種因素。但我要說的主要因素是你有客戶在一定程度上等待開始這項研究，這對他們來說規劃他們的業務並將藥物進入診所並最終進入市場變得有問題。

So we're seeing a normalization kind of pre-COVID normalization of that level of demand, still healthy, still a lot of price, still everybody, not everybody but almost everybody comes to Charles River for the really complex work and our geographic footprint. So we think this is in the process of normalizing. We think the demand will -- I'm not going to tell you about '24, but the demand will remain strong this year. If you didn't have the sort of primate overhang, I think we would have a very strong year in the safety business, not to the level of last year. So we're not concerned by that.

因此，我們看到了這種需求水平的正常化，即 COVID 前的正常化，仍然健康，價格仍然很高，仍然是每個人，不是每個人，但幾乎每個人都來 Charles River 進行真正複雜的工作和我們的地理足跡。所以我們認為這是在正常化的過程中。我們認為需求會——我不會告訴你關於 24 年的事情，但今年的需求將保持強勁。如果你沒有那種靈長類動物的懸垂，我認為我們在安全業務方面會有非常強勁的一年，而不是去年的水平。所以我們對此並不擔心。

We've got a very big denominator in this business. It's a big business now. We're having nice growth rate, taking share, getting good price. We don't see any amelioration of that.

我們在這項業務中有很大的分母。現在是一門大生意。我們的增長率很高，佔有份額，價格也不錯。我們沒有看到任何改善。

Yes. So I think if you look at our book-to-bill on a trailing 12-month basis, which is how many clinical CRs look at their book-to-bill we're still above 1x, and that formally supports our DSA revenue growth outlook for 2023. We got a question earlier around the NHP supply impact, and I commented again on the 200 to 400 basis points, you kind of do the math, you would be able to back into what would the DSA growth be, had we not had that disruption, and it would support a high single-digit, low double-digit growth in 2023. So I think that answers your question.

是的。所以我認為，如果您在過去 12 個月的基礎上查看我們的訂單到賬單，這是多少臨床 CR 查看他們的訂單到賬單，我們仍然高於 1 倍，這正式支持我們的 DSA 收入增長2023 年展望。早些時候我們收到了一個關於 NHP 供應影響的問題，我再次評論了 200 到 400 個基點，你可以算一下，你可以回到 DSA 增長是多少，如果我們沒有那種破壞，它將支持 2023 年實現高個位數、低兩位數的增長。所以我認為這回答了你的問題。

And we'll take our next question from Steve Windley with Jefferies.

我們將與 Jefferies 一起接受 Steve Windley 的下一個問題。

I do have a brother name, Steve Windley, so I actually -- my brother is actually Steve Windley. So Jim, I'll redirect a little bit. I know you already said no more NHP questions. I'm going to try to ask a positive. Yes. In your proxy, you put a kind of a commitment to '24 broadening out your supply chain diligence and how you work around your sourcing of these animals that are needed for research.

我確實有一個兄弟名字，史蒂夫溫德利，所以我實際上 - 我的兄弟實際上是史蒂夫溫德利。那麼吉姆，我會重定向一點。我知道你已經說過不再有 NHP 問題了。我要試著問一個積極的問題。是的。在您的委託書中，您對 24 年做出了某種承諾，擴大了您的供應鏈盡職調查範圍，以及您如何圍繞採購這些研究所需的動物開展工作。

I appreciate that. I look forward to the information in that, I guess I'm thinking in that context, certainly, if we go back to November, when the indictments were first unsealed, certainly kind of a big shock to the industry, how has that influenced your proxy calls at risk-based due diligence and risk-based supplier oversight? How has the environment changed the way you go about evaluating the situation? At SOT, there was a suggestion -- I thought I understood that you were not importing Cambodian animals into any part of the business, international or the U.S., and you're saying U.S. today.

我很感激。我期待其中的信息，我想我是在考慮這種情況，當然，如果我們回到 11 月，當起訴書首次公開時，這肯定對行業造成了很大的衝擊，這對你有何影響？代理呼籲基於風險的盡職調查和基於風險的供應商監督？環境如何改變了您評估情況的方式？在 SOT，有一個建議——我想我明白你沒有將柬埔寨動物進口到業務的任何部分，國際或美國，而你今天說的是美國。

So I wanted to understand that. But just kind of the risk management around the situation? How has the changing environment changed your risk management?

所以我想了解這一點。但只是圍繞這種情況進行風險管理嗎？不斷變化的環境如何改變了您的風險管理？

It's a good question, Dave. Our methodology hasn't changed very much. We believe we deal with suppliers who are certainly producing purpose bred animals under strict veterinary oversight and complying with [societies] permitting procedures. And of course, as we talked about for the last 2 or 3 years, we have multiple sources of supply, in other words, multiple countries, in some cases, multiple providers in those countries. We own some farms. We own pieces of some farms. We have long-term supply agreements with, I would say, almost all of them.

這是個好問題，戴夫。我們的方法沒有太大變化。我們相信，我們與供應商打交道，這些供應商肯定在嚴格的獸醫監督下生產目的飼養的動物，並遵守[社會]許可程序。當然，正如我們在過去 2 或 3 年中談到的那樣，我們有多個供應來源，換句話說，多個國家，在某些情況下，這些國家的多個供應商。我們擁有一些農場。我們擁有一些農場的碎片。我想說，我們幾乎與所有這些公司都簽訂了長期供應協議。

So -- and we go and we audit them. We have a little disruption in that audit because of COVID -- those audits because of COVID but we go and audit them. So we are familiar with the situation. So just to use your parlance, I think we were more shocked with the [indictments] because that's not the nature of the work that we're doing and other people that we're working with and that's obviously concerning any sort of allegations like that.

所以 - 我們去審核它們。由於 COVID，我們在審計中遇到了一些中斷——那些審計是因為 COVID，但我們去審計了它們。所以我們對情況很熟悉。所以用你的話來說，我認為我們對 [起訴書] 感到更震驚，因為這不是我們正在做的工作的性質，也不是我們正在與之合作的其他人的性質，而且這顯然涉及任何類型的指控.

So we'll continue to get closer to our suppliers. And I mean that in every way in terms of ownership, people on the ground, constant audits, the testing that we talked about 10 minutes ago with all of them. And dealing openly and appropriately and professionally with the various oversight bodies in a variety of countries. For competitive security and a whole bunch of other reasons, we want to not be too granular on how we're dealing the situation right now, except to underscore the fact that we have multiple sources of supply, and we're using the entire Charles River portfolio, which is worldwide, and I know you've been to a lot of sites and the ones who haven't been to , I think you know where they all are.

因此，我們將繼續與我們的供應商拉近距離。我的意思是，在所有權、實地人員、持續審計以及我們 10 分鐘前與所有人討論的測試方面的各個方面。並以公開、適當和專業的方式與不同國家的各種監督機構打交道。出於競爭安全和一大堆其他原因，我們不想對我們現在如何處理這種情況過於細化，只是強調我們有多個供應來源這一事實，並且我們正在使用整個 Charles River portfolio，它是全球性的，我知道你去過很多網站和那些沒有去過的網站，我想你知道它們都在哪裡。

And we think that that's always been a competitive advantage for us and being able to use those sites is really be beneficial. Then the last thing I would say, which we haven't said yet, although I think it's a -- the earlier materials is that we've had extensive conversations with the clients who have been terrific. And we said, okay, here's a situation we don't know exactly how many animals we'll be able to bring in. So you need to prioritize studies that you do in terms of what you need to start and when, and they're doing that.

我們認為這一直是我們的競爭優勢，能夠使用這些網站確實是有益的。然後我要說的最後一件事，我們還沒有說，雖然我認為這是一個 - 早期的材料是我們已經與非常棒的客戶進行了廣泛的對話。我們說，好吧，在這種情況下，我們不知道到底能引進多少動物。所以你需要根據你需要開始的內容和時間來確定你所做的研究的優先順序，以及它們'正在這樣做。

And you also have to be flexible about where you do it. So as you know, some of our clients, less all the time but some of our clients like, I only want to do the work wherever because I've always (inaudible), I did a post stock with the guy or gal that runs the site. So they've been terrific. I'd say our client base has really been very collaborative, working hard with us being open to getting the work done. They just want the work to start in the most timely fashion.

而且你還必須靈活地決定你在哪裡做。因此，如您所知，我們的一些客戶，雖然一直不那麼多，但我們的一些客戶喜歡，我只想在任何地方做工作，因為我一直（聽不清），我和運行的人或 gal 一起做了一個郵寄股票網站。所以他們一直很棒。我想說我們的客戶群真的非常協作，與我們一起努力工作，樂於完成工作。他們只是希望工作以最及時的方式開始。

So I would say we're doing a very good job so far disrupting as few clients as possible. We had a strong Q1. We will have a better Q2 with regard to the NHPs than we originally thought the back half of the year will be more challenging because of the comps.

所以我想說，到目前為止，我們做得很好，干擾了盡可能少的客戶。我們有一個強勁的第一季度。關於 NHP，我們將有一個更好的第二季度，而不是我們原先認為的下半年由於 comp 而更具挑戰性。

And we -- it's a fluid situation. We hope it's a positively fluid situation. So we'll -- when there's something granular that we think is permanent and beneficial for you all to know, we will tell you, but it's too changeable. And we don't want to be providing very detailed information that may not be sustainable, but we're very pleased with the way we're handling it in the way our clients are accepting the current situation.

而我們 - 這是一個不穩定的情況。我們希望這是一個積極的流動情況。所以我們會——當有一些我們認為對你們所有人來說是永久且有益的細節時，我們會告訴你們，但它太易變了。我們不想提供可能不可持續的非常詳細的信息，但我們對我們以客戶接受當前情況的方式處理它的方式感到非常滿意。

Appreciate that. If I could -- that was a long question and answer, if I could attempt to clarify one thing in the prepared remarks. So you talk about these NHPs and use the term pass-through. The pricing on the NHPs has gone up a lot. I just want to make sure I understand because DSA margin was very, very good, maybe the best of all time and that rising price on NHPs, if it is only passed through would be a pretty significant headwind to your margin.

感謝。如果我可以——這是一個很長的問答，如果我可以嘗試在準備好的發言中澄清一件事。所以你談論這些 NHP 並使用術語傳遞。 NHP 的價格上漲了很多。我只是想確保我理解，因為 DSA 利潤率非常非常好，也許是有史以來最好的，而且 NHP 的價格上漲，如果它只是通過的話，將對你的利潤率造成相當大的阻力。

And so I was hoping maybe Flavia, if you could clarify that for us. Are the NHPs contributing to margin? Or are they a detriment to margin?

所以我希望 Flavia，如果你能為我們澄清一下。 NHP 是否有助於保證金？還是它們會損害利潤率？

Dave. So a couple of things. Yes, the DSA margin was very robust in the first quarter. And a primary source of that continues to be underlying strong demand, specialty volume and also price outside of NHP. So we're very pleased with that. The NHP impact on margin, specifically as you're saying, at a macro level, as you pointed out, it's a pass-through, so it should be neither accretive or dilutive to the percentage margin.

戴夫。所以有幾件事。是的，第一季度的 DSA 利潤率非常強勁。其中一個主要來源仍然是潛在的強勁需求、專業數量以及 NHP 之外的價格。所以我們對此非常滿意。 NHP 對利潤率的影響，正如您所說，在宏觀層面上，正如您所指出的，它是一種傳遞，因此它既不會增加也不會稀釋百分比利潤率。

The timing on when we start NHP studies can have an impact on the mix that they have -- that they contribute towards or not to the margin. So depending on that and how we ended up the year in how many new NHP studies were starting or not in each quarter can have a modest impact on the margin. But what I would focus all of you on is the strength of the margin in the first quarter in DSA is primarily behind volume and underlying.

我們開始 NHP 研究的時間可能會影響他們的組合——他們對利潤率有貢獻或沒有貢獻。因此，根據這一點以及我們如何結束這一年，每個季度有多少新的 NHP 研究開始或沒有開始，可能會對利潤率產生適度的影響。但我要讓你們所有人關注的是，第一季度 DSA 的利潤率主要落後於銷量和基礎。

And we'll take our next question from Casey Woodring with JPMorgan.

我們將從摩根大通的 Casey Woodring 那裡回答下一個問題。

So as a follow-up to the DSA backlog question from earlier. By our math, it looks like bookings were down over 40% on the year in the quarter. So was that step down in line with your booking normalization expectations in DSA?

因此，作為之前 DSA 積壓問題的後續行動。根據我們的計算，本季度的預訂量似乎比去年同期下降了 40% 以上。那麼，這是否符合您在 DSA 中的預訂標準化預期？

And then just on manufacturing, quickly, I appreciate the commentary around the tough comps from last year, but curious as to the rationale for widening that growth range for the year. Wondering if there's any cushion baked in for more volatile cell and gene therapy demand environment, just given some of your peer commentary in the CDMO space from earlier this week.

然後就製造業而言，很快，我很欣賞圍繞去年艱難競爭的評論，但對擴大今年增長范圍的理由感到好奇。想知道是否有任何緩衝來應對更不穩定的細胞和基因治療需求環境，剛剛給出了本週早些時候在 CDMO 領域的一些同行評論。

Yes. So I think we talked about the normalization of the demand trends to more pre-pandemic levels. We had pointed out throughout all of last year that the backlog had extended meaningfully in terms of the delays of it with people booking really ahead as we have never seen before.

是的。因此，我認為我們討論了需求趨勢正常化到大流行前的水平。我們在去年全年都指出，積壓在延誤方面顯著擴大，人們提前預訂，這是我們以前從未見過的。

And that has definitely normalized. I think our clients are focusing on study starts that are sooner rather than a lot into the future. And as they do that, they also look at studies that were booked before and whether they're ready to initiate them or not. So as we said, it's -- we see the [case] of normalization from extraordinary levels in 2022.

這肯定已經正常化了。我認為我們的客戶正在關注更早而不是未來的學習開始。當他們這樣做時，他們還會查看之前預訂的研究以及他們是否準備好啟動這些研究。正如我們所說，我們看到 2022 年異常水平的 [案例] 正常化。

And then just on the manufacturing solutions, I think we had commented and expected a lighter first quarter vis-a-vis the overall guidance for the year that originally was low double digit.

然後就製造解決方案而言，我認為我們已經發表評論並預計第一季度相對於最初低兩位數的年度總體指導會有更輕的表現。

We not only saw the first quarter impact of the tough comps with the CDMO milestones in the COVID volume in biologics, but we also talked about a slightly slower start of the year for testing. And there might be some comments around the industry on bioprocessing. So we widened our guidance range a little bit on manufacturing to accommodate for that.

我們不僅看到了第一季度艱難的競爭與 CDMO 里程碑對生物製劑 COVID 數量的影響，而且我們還談到了今年年初的測試速度略有放緩。整個行業可能會對生物工藝發表一些評論。因此，我們稍微擴大了對製造業的指導範圍以適應這一點。

I think we're ready for the next question.

我想我們已經為下一個問題做好了準備。

And we'll take our next question from Tejas Savant with Morgan Stanley.

我們將從摩根士丹利的 Tejas Savant 那裡回答下一個問題。

And Jim, since you've told us not to ask about NHP. That is exactly what I will do. Just one clarification actually to that first question from Eric. Flavia, you mentioned sort of the 200 to 400 bps range being the same. But at the same time, you also talked about how some of your ongoing efforts should mitigate some of the impact here. So is it fair to assume that at the midpoint, things have moved a little bit towards the lower end of that 200 to 400 bps range?

吉姆，因為你告訴我們不要詢問 NHP。這正是我要做的。實際上只是對 Eric 的第一個問題的一個澄清。 Flavia，你提到 200 到 400 bps 的範圍是相同的。但與此同時，您還談到了您正在進行的一些努力應該如何減輕這裡的一些影響。那麼假設在中點，事情已經向 200 到 400 個基點範圍的下端移動了一點點，這是否公平？

And then, Jim, one for you in terms of just dealing with the competition here, more tactical rather than structural long term because I know you're very competitive here. But given some of these Chinese CROs and NHPs being an abundant supply there, also some of your U.S. competitors perhaps acquiring NHPs from some local suppliers, which you may or may not have wanted to deal with. How do you think about the near-term sort of tactical competitive landscape in the market at the moment?

然後，吉姆，就處理這裡的競爭而言，一個給你的，更多的是戰術而不是結構性的長期，因為我知道你在這裡非常有競爭力。但鑑於其中一些中國 CRO 和 NHP 在那裡供應充足，你的一些美國競爭對手也可能從一些當地供應商那裡收購 NHP，你可能不想與之打交道。您如何看待目前市場上近期的戰術競爭格局？

So maybe I'll just take the first question. We had provided a wider guidance range, obviously, this year, given the NHP supply situation. And to your point, it included 200 to 400 basis points of impact. As Jim commented, the second quarter is certainly a little bit better than we had planned, given the collaboration with our clients to work and schedule flexibly.

所以也許我會回答第一個問題。顯然，今年我們提供了更廣泛的指導範圍，考慮到 NHP 的供應情況。就您而言，它包括 200 到 400 個基點的影響。正如 Jim 評論的那樣，考慮到與客戶的合作以靈活地工作和安排，第二季度肯定比我們計劃的要好一些。

So we continue to include the 200 to 400 basis points in our guidance range, given also what Jim talked about, which is -- it continues to be a fluid situation. We're working very hard to be at the lower end of that range, but it's still early in the year. So I'll leave it at that. Jim, do you want to add?

因此，我們繼續將 200 到 400 個基點包括在我們的指導範圍內，同時考慮到吉姆所說的——它仍然是一個不穩定的情況。我們正在非常努力地處於該範圍的低端，但它仍處於今年年初。所以我會保留它。吉姆，你想補充嗎？

So on the NHP competitive scenario, I'd say a couple of things. One is obviously a significant number of NHPs in China to be utilized by Chinese CROs to both support their current industry, I mean, their internal China industry and perhaps some U.S. and European companies. The scale of the industry there is still relatively small. Obviously, that's subject to change over a period of time. Some clients may -- some Western clients may have gone there.

因此，在 NHP 競爭場景中，我會說幾件事。一個顯然是中國的 CRO 將利用大量的 NHP 來支持他們當前的行業，我的意思是，他們的中國國內行業以及一些美國和歐洲公司。那裡的產業規模還比較小。顯然，這可能會在一段時間內發生變化。一些客戶可能——一些西方客戶可能去過那裡。

It's difficult for us to tell, but not too many. And I think there is a reluctance for a whole bunch of obvious reasons to be taking your new drug. Newly patented drugs and doing the work in China. But having said that, I think they'll get the work done. Wherever they can. With regard to our domestic competitors, I'd remind you that number one, they're smaller, way smaller. Number two, I think they have very limited supply sources. Number three, I think they're also not bringing animals in from Cambodia, number four, they may be using suppliers that we might not use. So we are constantly trying to take the high road in terms of quality consistency and volume of supply. And we think we're in a very strong competitive position.

我們很難說，但不會太多。而且我認為，由於一大堆明顯的原因，人們不願意服用你的新藥。新專利藥在中國開展工作。但話雖如此，我認為他們會完成工作。無論他們在哪裡。關於我們的國內競爭對手，我要提醒你的是，第一，他們更小，更小。第二，我認為他們的供應來源非常有限。第三，我認為他們也沒有從柬埔寨引進動物，第四，他們可能正在使用我們可能不會使用的供應商。因此，我們不斷嘗試在質量一致性和供應量方面走高端路線。我們認為我們處於非常強大的競爭地位。

I will take our next question from John Sourbeer with UBS.

我將接受來自瑞銀的 John Sourbeer 的下一個問題。

I guess just looking into the CDMO, could you just talk about some of the backlog building there? I know there's been some announcements over the last several months. And just the maturity of some of these programs and you still see the potential for commercial products this year or into next year? And then just one follow-up, too, on unrelated subject. There's been some press reports on bands of harvesting of horseshoe crab, Just any comment there on what the size of that business is for Charles River?

我想只是看看 CDMO，你能談談那裡的一些積壓工作嗎？我知道過去幾個月有一些公告。只是其中一些程序的成熟，您仍然看到今年或明年商業產品的潛力嗎？然後也只有一個跟進，關於不相關的主題。有一些關於馬蹄蟹收穫帶的新聞報導，請問查爾斯河的企業規模有多大？

So on the CDMO business, has 3 parts. We have a cell therapy manufacturing business, which is our largest business. And [Memphis] is doing quite well, certainly compared to the prior year. I was just down there, a fabulous new facilities, new management team, new sales organization, a significant number of new clients, both large and small, we are producing our first commercial product. I can't divulge it, but we are.

所以在 CDMO 業務上，有 3 個部分。我們有細胞療法製造業務，這是我們最大的業務。而且[孟菲斯]做得很好，當然與前一年相比。我就在那裡，一個很棒的新設施，新的管理團隊，新的銷售組織，大量的新客戶，無論大小，我們正在生產我們的第一個商業產品。我不能透露，但我們是。

And we have other clients that are moving in that direction by that, I mean the filing with various government agents use in the U.S. and Europe and/or telling us to get ready for audits by either the FDA or the EMA. So moving in the commercial direction, we have new production suites which are available. Some of those have been reserved by clients that are either commercial now or think they will be soon because, obviously, they don't want to have a product approved and not get this.

我們還有其他客戶正在朝這個方向發展，我的意思是向美國和歐洲的各種政府機構提交文件和/或告訴我們準備好接受 FDA 或 EMA 的審計。因此，朝著商業方向發展，我們有新的生產套件可供使用。其中一些已被客戶保留，這些客戶要么現在已經商業化，要么認為他們很快就會商業化，因為很明顯，他們不想讓產品獲得批准而沒有得到這個。

So we're pleased with the way it's progressing. We also have a viral vector business in Rockville, Maryland, and it also has been enhanced facilities and management team and sales organization, which is strengthening nicely, and we have plans in DNA business in the U.K., which again has been somewhat transformed.

所以我們對它的進展方式感到滿意。我們在馬里蘭州的羅克維爾也有病毒載體業務，它也得到了加強的設施和管理團隊以及銷售組織，這些業務正在得到很好的加強，我們還計劃在英國開展 DNA 業務，這再次有所轉變。

We have centers of excellence in both of those sites now where they used to do multiple things. So CDMO business will have nice growth rates this year, notwithstanding the predetermined and expected difficult comps for Q1 that business will continue to strengthen through each quarter, both on the top line and the bottom line from a comparative basis. The horseshoe crab thing, you know that's the reagents that we use for our endotoxin test, I'll remind you that, that test is used for medical devices and injectable drugs required by law, has a lot of release test.

現在，我們在這兩個站點都設有卓越中心，它們過去常常做多種事情。因此 CDMO 業務今年將有不錯的增長率，儘管第一季度的預定和預期困難比較，業務將在每個季度繼續加強，無論是在頂線還是在比較基礎上的底線。馬蹄蟹的事情，你知道那是我們用於內毒素測試的試劑，我會提醒你，該測試用於法律要求的醫療器械和注射藥物，有很多放行測試。

I'll also remind you that, that was our first major foray into In Vitro systems that's actually considered In Vitro system even though uses the blood of horseshoe crabs. Those crabs are harvested in a variety of places. We have a little bit of pressure in one of our locations in South Carolina. Had some losses related to that. I won't get into all the details, but the punch line is we have some restrictions in fishing those waters, but we also have new locations to harvest perhaps in other parts of the U.S., which should hold us in good stead.

我還要提醒您，那是我們首次涉足 In Vitro 系統，即使使用鱟的血液，該系統實際上也被認為是 In Vitro 系統。這些螃蟹是在不同的地方收穫的。我們在南卡羅來納州的一個地點有一點壓力。有一些與此相關的損失。我不會詳細介紹所有細節，但重點是我們在這些水域捕魚有一些限制，但我們也有新的捕撈地點，也許在美國其他地區，這應該對我們有利。

We're also building the inventories nicely. I guess the last thing I would say is that our technology as opposed to the conventional technology, which is 96- well plate, and we still sell lots of that. But our forward-looking technology is a more sophisticated device, which uses 95% of less crude. So our need for crude, which is the blood from the horseshoe crabs is actually as we transfer the clients to new technologies actually decreasing all the time. So we're in good shape there.

我們也在很好地建立庫存。我想我最後要說的是，我們的技術與傳統技術（即 96 孔板）截然不同，我們仍然大量銷售這種技術。但我們的前瞻性技術是一種更先進的設備，它使用的原油少了 95%。所以我們對原油的需求，也就是鱟的血液，實際上是因為我們將客戶轉移到新技術上，實際上一直在減少。所以我們在那裡的狀態很好。

And we'll take our next question from Justin Bowers with Deutsche Bank.

我們將從德意志銀行的 Justin Bowers 那裡回答下一個問題。

Just sticking with the CDMO and the improvements there. Sequentially, I think in the deck or the prepared remarks, too, you talked about returning to those targeted growth rates. Can you just remind us what those are? And then maybe qualitatively is for 2023, are you thinking that, that business is sort of above or below the segment growth rates for the year?

只是堅持 CDMO 和那裡的改進。隨後，我認為在演講稿或準備好的發言中，你也談到了回到那些目標增長率。你能提醒我們那些是什麼嗎？然後也許定性是 2023 年，您是否認為該業務高於或低於當年的細分市場增長率？

We're expecting that those businesses in the aggregate, again, with Memphis being the, by far, the largest piece, we'll grow at 20% to 25%, which is what we had anticipated when we bought them. So that's a great growth rate. Obviously accretive to the growth rate of the Manufacturing segment. And at a certain scale, obviously somewhat accretive to the growth rate of companies, all but as it grows. -- it will be increasingly more accretive.

我們再次預計，這些業務總體而言，孟菲斯是迄今為止最大的一塊，我們將以 20% 至 25% 的速度增長，這是我們收購它們時的預期。所以這是一個很大的增長率。顯然增加了製造部門的增長率。在一定規模上，顯然在一定程度上增加了公司的增長率，但隨著公司的增長。 ——它將越來越具有增值性。

So lots of demand, limited competitive scenario. I mean some clients are doing it themselves, but I'm talking about on a contract basis. We have good competitors, but not a lot of them. Lots of drugs in development that we're working on the preclinical sector. And then obviously, lots of those moving into the clinical domain. Only a few have been approved, still think it's 13 to 14 totally. We're now making 1 of those gene-modified cell therapy products. So we're very pleased and proud of that.

如此多的需求，有限的競爭場景。我的意思是有些客戶自己做，但我說的是合同基礎。我們有很好的競爭對手，但不是很多。我們在臨床前領域正在開發許多正在開發的藥物。然後很明顯，很多人進入了臨床領域。只有少數獲得批准，仍然認為總共是 13 到 14。我們現在正在生產其中一種基因修飾細胞療法產品。因此，我們對此感到非常高興和自豪。

Early days from a volume point of view, so it's not transformational necessarily from that point of view. But I think reputationally, with regard to other potential current clients being comfortable with our capability and also the regulatory agencies having [on a note] and being pleased with what they saw holds us in good stead.

從數量的角度來看還處於早期階段，因此從這個角度來看不一定具有變革性。但我認為，就聲譽而言，其他潛在的現有客戶對我們的能力感到滿意，監管機構也對他們所看到的情況感到滿意，這對我們有利。

So we're happy with our infrastructure, with the growing client base with our scientific capabilities with our ability to sell more effectively. It's a pretty long sales cycle. So we're out and about well -- well in advance. It is a fair amount of price power in this business because it's complicated and expensive to set it up. And while you may have some very big companies set their own shop up small and medium-sized biotech is not going to be able to afford it. So like in safety, well, like in all of our businesses, we've got to need to be paid well for recurrent and future investment in this space.

因此，我們對我們的基礎設施、不斷增長的客戶群、我們的科學能力以及我們更有效地銷售的能力感到滿意。這是一個相當長的銷售週期。所以我們很順利——提前了。在這項業務中，這是相當大的價格權力，因為設置它既複雜又昂貴。雖然你可能有一些非常大的公司設立了自己的商店，但中小型生物技術公司將無法負擔得起。因此，就像在安全方面一樣，好吧，就像在我們所有的業務中一樣，我們必須為這個領域的經常性和未來投資獲得豐厚的報酬。

But we're pleased with the way it's going. We learned a lot last year. We made a lot of fundamental changes in the physical plant and in the scientific and G&A staff and just getting the word out that this is something that we do as we go to more scientific meetings and present more paper. So we should hit the growth rates that we originally anticipated in our acquisition model.

但我們對它的發展方式感到滿意。去年我們學到了很多東西。我們對物理工廠以及科學和 G&A 員工進行了很多根本性的改變，並且只是說這是我們在參加更多科學會議和提交更多論文時所做的事情。因此，我們應該達到我們最初在收購模型中預期的增長率。

Great. And congrats on the commercial production there in Memphis. And then maybe just a quick follow-up on RMS and NHPs in China. Is that -- are the -- is the messaging there? Was there a blip in 1Q and then it's back to normal in 2Q? Or has something changed in the way that you're sort of going to market there with RMS and NHPs in China?

偉大的。並祝賀孟菲斯的商業生產。然後可能只是對中國的 RMS 和 NHP 進行快速跟進。那是——是——那裡有信息嗎？是不是一季度出現了一個小插曲，二季度又恢復正常了？還是您在中國使用 RMS 和 NHP 進行營銷的方式發生了變化？

We have supply sources in China that have to stay in China. So we sell the animals to clients in China. Usually, we can predict the time frame. So this just slipped out a little bit. So nothing is fundamentally changed. It's a huge part of the business, but it's meaningful certainly to our Chinese business and slightly less meaningful, but still meaningful to our RMS. Margins are good. Animal quality is good. And so yes, that will continue to be part of our situation over there. But nothing's fundamentally changed, just slid out a little bit.

我們在中國有供應源，必須留在中國。所以我們把動物賣給中國的客戶。通常，我們可以預測時間範圍。所以這只是有點滑落了。所以沒有任何根本改變。這是業務的很大一部分，但它對我們的中國業務當然有意義，雖然意義不大，但對我們的 RMS 仍然有意義。利潤率很好。動物品質好。所以是的，這將繼續成為我們在那裡的情況的一部分。但是沒有什麼根本的改變，只是滑了一點點。

Yes. It's purely timing. I would characterize.

是的。這純粹是時機。我會描述。

And we'll take our next question from Elizabeth Anderson with Evercore.

我們將與 Evercore 一起接受伊麗莎白安德森的下一個問題。

You could comment on sort of backlog cancellations in the first quarter. Is that something that you're sort of seeing as broadly steady sequentially? Are you seeing any sort of changes in the characterization of that at all?

您可以對第一季度的積壓訂單取消發表評論。您認為這是大致穩定的順序嗎？您是否看到它的特徵有任何變化？

Yes. So Elizabeth, we've been talking about cancellations and slippage throughout last year as we also continue to talk about the size of the backlog, which had expanded to significantly higher than historical levels. And we talked about the elongation of that backlog, which, as one might expect would drive additional cancellations or slippage.

是的。所以伊麗莎白，去年我們一直在談論取消和延誤，同時我們還繼續談論積壓的規模，它已經擴大到明顯高於歷史水平。我們談到了積壓的延長，正如人們可能預料的那樣，這會導致更多的取消或延誤。

So first, cancellations and slippage are a normal part of the business as clients do not have the test articles ready or continue to negotiate design study with the appropriate regulatory agencies that normally happens in the business.

因此，首先，取消和延誤是業務的正常部分，因為客戶沒有準備好測試物品或繼續與業務中通常發生的適當監管機構協商設計研究。

As the backlog elongated in time, that certainly becomes more pronounced as it's harder to predict things that much into the future. So we had seen that elongate throughout 2022. I think we're getting back to I would say, maybe more normalized pre-pandemic levels. And so I think those things will work or will adjust together. The backlog is not going to be perhaps as well long and the cancellation and slippage will lower accordingly.

隨著積壓的時間延長，這肯定會變得更加明顯，因為更難預測未來的事情。所以我們已經看到這種情況在整個 2022 年都在延長。我想我們會回到我想說的，也許是更正常化的大流行前水平。所以我認為這些東西會起作用或會一起調整。積壓的訂單可能不會太長，取消和延期也會相應降低。

Got it. That's super helpful. And then just wanted to follow-up, like, obviously, the margin in manufacturing was impacted a bit by the lower revenue growth, I would imagine in the quarter. But the OpEx growth in general seemed a little bit higher than your usual kind of run rate on that. Can you just talk to maybe like the cadence of that in the back half of the year and sort of how much was sort of specifically a function of maybe some of the deleveraging and manufacturing support versus how you're seeing any kind of cadence changes in the spend over the rest of the year?

知道了。這非常有幫助。然後只是想跟進，很明顯，製造業的利潤率受到收入增長較低的影響，我想在本季度。但總的來說，運營支出的增長似乎比你通常的那種運行率高一點。你能談談今年下半年的節奏嗎？具體來說，有多少是去槓桿化和製造業支持的功能，而不是你看到的任何節奏變化今年剩餘時間的支出？

So let me comment first on the Manufacturing Solutions margin in the quarter. So as Jim talked about, we had some of those prior year headwinds with the milestones in CDMO and the biologics COVID volume that we no longer have. We also had a lighter start in biologics testing this year. And then I think we also talked about we had an asset impairment in that segment in Q1. So all those things contributed to a, I'd say, unusually low manufacturing solutions margin in Q1 I think for the overall margin for the company, we were about 20 basis points lower year-over-year.

因此，讓我首先評論本季度的製造解決方案利潤率。因此，正如吉姆所說，我們在 CDMO 的里程碑和我們不再擁有的生物製劑 COVID 量方面遇到了一些前一年的逆風。今年我們在生物製劑測試方面也有一個較輕的開端。然後我想我們還談到了第一季度該部門的資產減值。因此，所有這些因素導致了第一季度異常低的製造解決方案利潤率，我認為就公司的整體利潤率而言，我們同比下降了約 20 個基點。

And we continue provided an update on the guidance for the full year of flat to lower versus 2022, given the continued fluidity of the NHP situation that we talked about earlier.

考慮到我們之前談到的 NHP 情況的持續流動性，我們繼續提供了與 2022 年相比持平到更低的全年指導的更新。

We'll take our next question from Tim Daley with Wells Fargo.

我們將從富國銀行的蒂姆戴利那裡回答下一個問題。

Great. So Jim, just moving away from all these near-term factors here. I wanted to clarify some comments made at a broker conference in March around the RMS segment long-term growth rate. So over the past 2 years, you guys have formally up indexed long-term growth forecast in RMS from low single, mid-single to mid-single, high single and DSA from high single to 10%. So where we sit today, are those still the official goalposts or any further updates here on that framework on the segment level?

偉大的。所以吉姆，只是遠離這裡的所有這些近期因素。我想澄清在 3 月份的經紀人會議上圍繞 RMS 部分長期增長率發表的一些評論。所以在過去的兩年裡，你們正式將 RMS 的長期增長預測從低單、中單上調到中單、高單和 DSA 從高單上調到 10%。那麼我們今天坐在哪裡，這些仍然是官方目標還是在細分級別的框架上有任何進一步的更新？

I mean, certainly, for this year, we feel good about RMS growing at high single, the constituent parts of that business continue to strengthen. We're actually gaining share in the U.S. and Europe, which we haven't seen in a lot of time. We always get price in that business. Chinese business is growing nicely both in the small animal side and NHP business. Service businesses, which have great margins. are growing very nicely.

我的意思是，當然，今年，我們對 RMS 以高單增長感到滿意，該業務的組成部分繼續加強。實際上，我們在美國和歐洲的市場份額正在增加，這是我們很長時間以來從未見過的。我們總是在該業務中獲得價格。中國業務在小動物方面和 NHP 業務方面都增長良好。服務業務，利潤豐厚。長得很好。

Obviously, we did an acquisition last year, which is Explora labs with all of these new [CRDLES] and very important geographies, really great receptivity in a tough economy for these sites. And surprisingly, nicely surprisingly, clients are both very large and very small. And we felt they would be only smart clients. And the cell supply business, which was in the prepared remarks, but we haven't talked about that much, all because of small business really had probably the only business in the portfolio really had a tough time as a result of COVID and had a very nice first quarter.

顯然，我們去年進行了一次收購，這是 Explora 實驗室，擁有所有這些新的 [CRDLES] 和非常重要的地理位置，在經濟不景氣的情況下對這些網站的接受度真的很高。令人驚訝的是，令人驚訝的是，客戶既有非常大的，也有非常小的。我們認為他們只是聰明的客戶。還有電池供應業務，它在準備好的評論中，但我們沒有談那麼多，這都是因為小型企業確實可能是投資組合中唯一的業務，由於 COVID 確實經歷了一段艱難的時期，並且第一季度非常好。

So I'd say, without getting into '24, obviously, that the outlook for that business continues to be stronger. [Perhaps it's] extremely well utilized competition. Well, we always respect -- [withstanding] what I'm about to say, I would say, is continues to be financially less strong and more fragile. And more (inaudible) . So I think it's difficult for them to compete with us. So we're feeling really good about that. On the DSA side with some moderation from an extremely strong '22 and assuming that the NHP situation gets resolved permanently as we hope it does.

所以我想說，在沒有進入 24 年的情況下，顯然，該業務的前景繼續更加強勁。 [也許它] 非常好地利用了競爭。好吧，我們始終尊重——[儘管]我要說的是，我要說的是，財務狀況繼續不那麼強勁，而且更加脆弱。還有更多（聽不清）。所以我認為他們很難與我們競爭。所以我們對此感覺非常好。在 DSA 方面，從非常強大的 22 年開始有一些緩和，並假設 NHP 情況如我們希望的那樣得到永久解決。

And we think that's going to be a DSA should be a strong business for us. Our current guidance given the vagaries is, what is a low to mid-single digit, but the current long-term guidance out there is what low double, I think, so we'll give updates on all of those growth rates sometime when we have our -- sometimes when we have our investor conference. So things are a little bit fluid, as I said, on the NHP side, but we'll give guidance, assuming that, that's clarified or hopefully it will be clarified by the time we have our investor comments.

我們認為這將成為 DSA 對我們來說應該是一項強大的業務。鑑於變幻莫測，我們目前的指導是低到中個位數，但我認為目前的長期指導是低兩倍，所以我們會在某個時候提供所有這些增長率的更新有我們 - 有時我們有我們的投資者會議。因此，正如我所說，在 NHP 方面，事情有點不穩定，但我們會提供指導，假設已經澄清，或者希望在我們收到投資者評論時澄清。

But I think we have pretty much across the board, very good demand for what we do. I think we're providing an extraordinarily valuable service and products with various (inaudible) out of position and great connectivity across the various parts of our business that should only be enhanced given the current portfolio and hopefully, as we continue to add to with very small and perhaps the midsized deals.

但我認為我們對我們的工作有非常全面的需求。我認為我們正在提供非常有價值的服務和產品，其中有各種（聽不清）不合適的地方和我們業務各個部分的良好連接，只有考慮到當前的產品組合，並且希望隨著我們繼續增加非常小型甚至中型交易。

Great. And then a quick one for Flavia. What's the overall China exposure as a percent of revenues, an update on that? And then are any big businesses or segments over under indexed to China. I appreciate it.

偉大的。然後是 Flavia 的快速發言。中國的總體風險佔收入的百分比是多少，對此有何更新？然後是任何大企業或細分市場都與中國掛鉤。我很感激。

Yes. I think the only business really that we have a China presence is RMS with obviously our models business there, but also the services business. And so as you can imagine, because -- and then we also have microbial which is part of the manufacturing solutions business, be distributed and available in China. So our largest business -- excuse me, our largest segment, which is DSA, has no presence in China. So as a result of that, China is a fairly modest portion of overall Charles River sales.

是的。我認為我們真正在中國開展業務的唯一業務是 RMS，顯然我們在那裡有我們的模型業務，還有服務業務。所以你可以想像，因為 - 然後我們還有微生物，它是製造解決方案業務的一部分，在中國分銷和提供。所以我們最大的業務 - 對不起，我們最大的部門，即 DSA，在中國沒有業務。因此，中國在 Charles River 總銷售額中所佔的比例相當小。

I think it's still less than 5% of total revenue, probably 3% or 4%. I mean -- I think last time we updated, it's like 10% or 15% of RMS revenue.

我認為它仍然不到總收入的 5%，可能是 3% 或 4%。我的意思是——我認為上次我們更新時，它大約是 RMS 收入的 10% 或 15%。

Thank you. We have no further questions in the queue. I will turn the conference back to Todd Spencer for closing remarks.

謝謝。隊列中沒有其他問題。我將把會議轉回 Todd Spencer 作閉幕詞。

Great. Thank you for joining us on the conference call this morning. We look forward to seeing you at upcoming investor conference in June. That concludes the conference call. Thank you.

偉大的。感謝您今天早上加入我們的電話會議。我們期待在 6 月即將舉行的投資者會議上見到您。電話會議到此結束。謝謝。

Thank you. That does conclude to today's Charles River Laboratories First Quarter 2023 Earnings Call. Thank you for your participation, and you may now disconnect.

謝謝。今天的 Charles River Laboratories 2023 年第一季度收益電話會議到此結束。感謝您的參與，您現在可以斷開連接。