The contract research organisation (CRO) saw its pre-tax profit gain 26 per cent on the comparable 2006 quarter to reach $60.4m (€41.7m), while operating profit was $63.6m, an increase of 23 per cent. Revenues climbed 19 per cent to $314.0m, while costs rose by the same.

In the Preclinical Services segment, the firm said that a 23 per cent sales growth was largely attributed to continuing strong demand for general and specialty toxicology services along with the 2006 acquisition of the Northwest Kinetics Phase I clinical services business - its first Phase I clinical trials facility in the US. Segment revenue for the quarter was $168.8m.

In the Research Models and Services unit, a sales growth of 14 per cent was driven largely by demand for research models in the US and Europe; worldwide transgenic services; and in vitro products. Sales totalled $145.2m.

Charles River also said that the revenue growth in the third quarter largely offset the effect of both the transition costs to its new preclinical facility in Shrewsbury, Massachusetts and higher corporate costs.

In the second quarter, overall Preclinical Services segment profit margin was dragged down by the new facility in Massachusetts, which was "significantly affected" by transition and start-up costs. This quarter, however, the margin rose 10 percentage points year-over-year.

Charles River has been exiting from its facility in Worcester, Massachusetts and moving to the new site in Shrewsbury, a move which is due to be completed by the end of the year. As part of this, the company is planning to improve the sales mix at the Shrewsbury site, which involves an expansion of services to include a greater proportion of long-term development work.