Inotiv full-year loss grows; more site consolidation planned
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West Lafayette-based Inotiv Inc. is reporting a fiscal full-year net loss of $108 million, compared to a loss of $105 million the previous year.
The pharmaceutical testing company said this week that it plans to continue its efforts to consolidate some of its facilities across the United States next year.
Inotiv said revenue for the fiscal year totaled $491 million, down 14.3% from the previous year. For the fourth quarter, the company reported $130.4 million in revenue, marking a 7.3% decrease.
The net loss for the year included a $28.5 million charge related to an agreement reached in June with federal authorities as part of a criminal plea admitting that Inotiv subsidiary Envigo RMS neglected thousands of dogs at its breeding facility in rural Virginia.
Despite the growing net loss, CEO Robert Leasure said the company is making productive moves.
“Going forward, we are planning further integration and cost reduction initiatives, we will continue to focus on improving the customer experience, and we will continue to evaluate opportunities to improve our balance sheet,” Leasure said in a news release. “We look forward to seeing results from initiatives we have implemented during the last two years. Moreover, addressing the challenges we have faced over the past two years has made many aspects of our business stronger.”
Inotiv has spent the last few years consolidating operations at sites across the U.S. and United Kingdom.
In its earnings report, the company said it would initiate the next phase of its site optimization program to further improve and consolidate additional Research Models & Services facilities in the U.S., though specific locations were not provided.
The move is expected to reduce operating expenses by up to $5 million, Inotiv said.
Inotiv stock was down 7.9% to $3.86 per share at midday trading Wednesday. You can view the full earnings report by clicking here.
