Charles River Laboratories Surged 8.6% Intraday—Is This a Game-Changer for Biotech Innovation?

Summary
• Charles River Laboratories (CRL) shares jumped 8.6% to $162.74, driven by a partnership with Elly’s Team for a rare disease gene therapy trial.
• The stock traded between $155.48 and $167.83, marking its strongest intraday gain in over a year.
• Sector peers like Amgen (AMGN) rose 2.4%, but CRL’s move outperformed due to its specialized CGT focus.

Charles River Laboratories (CRL) is experiencing a dramatic reversal after securing a pivotal plasmid DNA manufacturing agreement with Elly’s Team, a foundation tackling a rare genetic disorder. The stock’s 8.6% surge reflects investor enthusiasm for its role in gene therapy, a high-growth segment of the biotech industry. With the stock rebounding from a 11.6% YTD decline, the move underscores the market’s renewed faith in CRL’s ability to capitalize on the advanced therapies boom.

Rare Disease Partnership Ignites Biotech Sector Optimism
Charles River Laboratories’ 8.6% intraday surge was catalyzed by its partnership with Elly’s Team to manufacture plasmid DNA for a Phase I clinical trial targeting NEDAMSS, a rare genetic disorder. The agreement, part of CRL’s Cell and Gene Therapy Accelerator Program, highlights the company’s expanding role in the CGT market, which is projected to grow exponentially as demand for curative therapies for ultra-rare diseases intensifies. By providing critical manufacturing capabilities for this trial, CRL has demonstrated its ability to secure high-margin, specialized contracts in a niche but rapidly expanding segment. The move also aligns with broader industry trends, as biotech firms increasingly outsource complex manufacturing to CDMOs to accelerate timelines and reduce costs.

Options and ETFs for Capitalizing on CRL’s Volatility
• Technical Indicators: 200-day average: 164.24 (above); RSI: 47.42 (neutral); MACD: 2.42 (bullish divergence).
• Key Levels: Bollinger Bands indicate support at $146.07 and resistance at $163.03. The 200-day SMA at $164.24 acts as a critical psychological hurdle.
• Leveraged ETF: No leveraged ETF data available, but sector momentum suggests a focus on individual options.

Top Options Contracts:
• CRL20250815C160: Call option with 160 strike, expiring 2025-08-15. IV: 63.69%, Leverage: 13.13%, Delta: 0.58, Theta: -0.3559, Gamma: 0.0144, Turnover: 139,612. This contract offers high leverage and liquidity, ideal for a bullish continuation. If CRL closes above $160 by August 15, the option could deliver substantial returns.
• CRL20250815C170: Call option with 170 strike, expiring 2025-08-15. IV: 60.39%, Leverage: 21.88%, Delta: 0.43, Theta: -0.3115, Gamma: 0.0153, Turnover: 62,784. This option balances moderate delta with high gamma, making it sensitive to price swings. A 5% upside to $170.88 would yield a 15.5% payoff (max(0, 170.88 - 170) = $0.88).

Aggressive bulls should consider CRL20250815C160 into a breakout above $160 or CRL20250815C170 for a longer-term play on sustained momentum. Both contracts offer high leverage and liquidity, but CRL20250815C160 is more immediate, given its proximity to the current price.

Backtest Charles River Laboratories International Stock Performance
The 9% intraday surge in CRL has historically led to mixed short-to-medium-term performance. While the 3-day win rate is 51.68%, indicating a majority of days with positive returns in the initial period, the overall trend over 10 and 30 days shows negative returns (-0.01% over 10 days and -0.32% over 30 days), with a maximum return of only 0.78% during the backtested period. This suggests that while CRL may experience a positive reaction to significant intraday gains, the broader trend tends to be muted or even slightly negative in the following days.

Biotech Bulls Should Ride the CRL Momentum—Here’s How
Charles River Laboratories’ 8.6% surge reflects strong conviction in its CGT capabilities and the sector’s long-term growth potential. The stock’s rebound from a 11.6% YTD decline suggests a potential inflection point, particularly if it sustains above the 200-day SMA at $164.24. With Amgen (AMGN) up 2.4% and the biotech sector showing resilience, CRL’s momentum is well-positioned to continue. Investors should monitor key levels: a break above $163.03 (upper Bollinger Band) could trigger a test of the 52-week high at $254.15, while a close below $154.55 (middle Bollinger Band) would signal caution. For now, the August 15 options chain offers clear entry points to capitalize on this volatility. Watch for $165.05 support or August expiration volatility.