Citi flags uncertainty in life science sector as funding shifts and tariffs bite

** Citi Research says North America's life science sector struggled in the first half of 2025 as new U.S. funding policies and global tariffs hit tools companies hardest

** Brokerage views diagnostics companies as more stable, since they rely less on government or big pharma funding, making them safer investments

** Contract Research Organizations (CROs) are seeing more cancellations and tariff risks - Citi

** Upgrades Charles River Laboratories CRL to "buy" from "neutral," citing conservative earnings cuts and potential activist support

** Downgrades Illumina ILMN to "sell" from "neutral," on risks from China, government funding, and more competition

** Upgrades Hologic HOLX to "buy" from "neutral" due to takeover interest and gradual recovery in breast health

** Shares of ILMN down 3%, HOLX up 0.6%, CRL up 2.9%

** Including session's move, CRL has shed 12.7% and HOLX has lost 9.8% of its value; ILMN is down 26.4% this year