We worked really hard over the last, I’d say, COVID years, so probably three years now, maybe four particularly after China closed out in 2018 to have a multiplicity of suppliers. And I won’t go through where they are and what their names are, but we have multiple supply sources. And so we were starting this year with more than a sufficient number of monkeys to do the work. You know we have orders last year way into the back half of 2023 and some into 2024 and hopefully, some incremental on top of that. And as I said earlier, we had staff and space. So we’re heading into this €“ and we had an extraordinary second half of last year. So we’ve been heading into this year really optimistic about our supply sources. So I would say that we have multiple supply sources, which is great.
I would tell you in specific answer to your question that if Cambodia never opens up, there will be an insufficient number of monkeys to do the work for the whole industry. And I’m not just saying this with €“ through Charles River lens. That’s not a tolerable situation. That’s not an acceptable situation for the health of patients, for drug development, for getting drugs through preclinical into the clinic. So we have to find an accommodation. They €“ the dialogue with them was quite open, and they’ve been really clear to say you just have to show parentage and by that, listing. What we mean by that is just that you can track the offspring to mothers and that those mothers are part of a purpose-bred operation. So we believe that we can do that.
We believe that Cambodia will open up at some point. We’re hopeful that it will be sort of best case to become end-ish of third quarter with the animals in the fourth because it’s a big industry dilemma if that can’t happen. And I will let Flavia drill down on the financial impact of what we just gave in our guidance.
Flavia Pease: Thanks, Jim and good morning Eric. Yes, our EPS guidance obviously assumes different scenarios as we mentioned in our prepared remarks. Obviously, the revenue loss drops down at a fairly high rate initially. But I’ll prefer not to comment on the specifics.
Operator: All right. Thank you. Our next question will come from Sandy Draper with Guggenheim. Your line is open.
Todd Spencer: Hey Sandy, are you on mute? We can’t hear you.
Sandy Draper: Yes. Thanks, Todd. So just a quick follow-up on NHP and then my bigger questions on the CDMO business. But to make sure I understand it correctly, you’ve decided, Jim, to stop. But were you ordered to stop taking on primates from the supplier to this resolved? And basically is this €“ you’re waiting from signals from the Food and Wildlife or the FDA and so your hands are tied? Or once you think things are clear, you can make the call? So I just want to make sure I understand that. And then the bigger question is just on clearly encouraging signs on the CDMO in your guidance. Going back to the miss in 2022, is this just a function of time and that you’ve sort of gone through that 12 months of just rebuilding the pipeline that you had that sort of the air pocket? Or has demand actually gotten better? Thanks.
