Inotiv releases delayed earnings report
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About a month after West Lafayette-based Inotiv Inc. (Nasdaq: NOTV) announced it would delay its fiscal fourth quarter and full-year earnings due to a federal investigation, the pharmaceutical testing company on Tuesday released the reports. The company is reporting a net loss of $337.3 million for FY 2022, compared to net income of $10.9 million the previous year.
Inotiv also reports a Q4 consolidated net loss of $243.6 million, compared to net income of $9.4 million during the same period a year ago.
In early December, the contract research company said it would postpone delivering its financial earnings reports. Inotiv said the move was the result of an investigation into illegal imports of non-human primates (NHPs) by its principal supplier.
In November, the company was notified that the U.S. Attorney’s Office for the Southern District of Florida had charged two employees of the supplier with conspiring to illegally import NHPs from Cambodia into the U.S. from December 2017 through January 2022.
Inotiv said it would refrain from selling NHPs imported from Cambodia “for the time being,” though it was not being required to do so.
During the fiscal year, Inotiv acquired seven businesses to expand its portfolio. It says those purchases helped grow revenue to $547.7 million in FY 2022, compared to $89.6 million during the previous fiscal year.
“2022 was a milestone year, as we made significant progress, put an excellent team in place, and continued to improve our services and capacity while integrating and optimizing our facilities. While we have built the business through acquisitions, we have also seen significant organic growth which has been critical to our success,” said Robert Leasure Jr., president and CEO. “Although we are facing headwinds related to NHP disruption, we have entered fiscal year 2023 with a much stronger organization, and a clear vision of what we need to focus on to improve earnings, cash flow and overall operations.”
The NHP investigation was not the only hurdle for the company. In May, the company’s Indianapolis-based subsidiary, Envigo RMS, was the subject of a federal lawsuit regarding animal welfare violations at a Virginia facility used for breeding dogs.
The company reached a settlement with the U.S. Department of Justice and the U.S. Department of Agriculture in July that included relinquishing 4,000 beagles at the facility to the Humane Society of the United States. Inotiv had previously announced it would close its two Virginia facilities.
Click here to access the full report.