Inotiv swings to loss despite ‘productive’ quarter
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West Lafayette-based Inotiv Inc. is reporting a fiscal third-quarter net loss of $26.1 million, compared to net income of $1.8 million during the same period last year.
CEO Robert Leasure said while the quarter was productive for the pharmaceutical testing company, it was not without its challenges.
In a news release Thursday, Leasure said the third quarter, the same as the previous quarter, was negatively impacted by lower demand and pricing for non-human primates, or NHPs.
“However, we were able to accomplish some significant milestones and see signs of improvements going into the end of 2024 and into 2025,” he said. “We were pleased to see the conclusion of certain open government investigations. We are seeing signs of recovery for the NHP business.”
In late 2022, Inotiv delayed the release of its full-year earnings report amid an investigation by the U.S. Attorney’s Office for the Southern District of Florida, which had charged two employees of the company’s principal NHP supplier in Cambodia, along with two Cambodian officials, with conspiring to illegally import NHPs into the U.S. from December 2017 through January 2022.
Two of Inotiv’s subsidiaries had received grand jury subpoenas from the U.S. Attorney’s office to produce documents and information related to their imports of NHPs into the U.S.
Inotiv said in Thursday’s release that the U.S. Attorney’s office notified the company on July 23 that “it was no longer investigating the Company or its subsidiaries with respect to their procurement of NHPs from foreign suppliers or NHP importation practices.”
The company previously said it had ceased imports of NHPs from Cambodia—though it was sourcing them from other locations—but did not provide an update on whether that policy had changed.
Inotiv also reported that third-quarter revenue fell nearly 33% to $105.8 million, primarily driven by a $49.1 million decrease in its Research Models & Services business unit, which was attributed to lower NHP-related product and service revenue.
Also in the third quarter, Inotiv’s Indianapolis-based subsidiary, Envigo RMS, had reached an agreement with federal prosecutors to pay a record $35 million as part of a criminal plea admitting it neglected thousands of dogs at its breeding facility in rural Virginia, which has since been closed.
Inotiv’s stock was down nearly 1.5% to $1.66 per share at midday trading Friday.
You can view the full earnings report by clicking here.