Inotiv posts Q2 loss; facility consolidations continue
West Lafayette-based Inotiv Inc. is reporting a fiscal second quarter net loss of $10 million, compared to a loss of $6.1 million during the same period last year. Despite the loss, CEO Robert Leasure said the company is making progress with its ongoing site optimization initiatives.
The pharmaceutical testing company said revenue for the quarter increased to $151 million. Leasure said the company is seeing growth with new service lines and investments made to expand the business over the past 12 to 18 months.
“Our recent investments have expanded our services for the drug discovery and development industry,” Leasure said in a news release. “These new services, including expanded genetic toxicology and safety pharmacology offerings, new biotherapeutics services, and enhanced proteomic technologies, increase our ability to support the development of important new therapeutics including cell and gene therapies, allow us to improve speed to market for our clients, expand our market and client base, and help to reduce our outsourcing expenses.”
Inotiv’s site optimization efforts include the previously-announced consolidation of two isolator facilities in Indianapolis. The company said the relocation of those operations to other Inotiv facilities is expected to be complete by June 30.
In March, Inotiv completed the relocation of its operations in Haslett, Michigan and Boyertown, Pennsylvania to its newly-renovated facility in Denver, Pennsylvania. The Haslett and Boyertown facilities have been listed for sale.
The company says its efforts to consolidate its operations in France and the U.K. to other existing locations are ongoing.
“We believe the completion of these growth and consolidation activities will improve our ability to increase sales and enhance margins,” Leasure said.
Last year, Inotiv said it would refrain from selling or delivering any of its Cambodian non-human primates, or NHPs, held in the U.S. because of an investigation into illegal imports of NHPs by its principal supplier.
The company did not state in its latest earnings report when it would resume operations related to NHPs from Cambodia.
“We continue to address the current NHP supply disruption issues in the U.S., which includes establishing procedures aimed at providing additional assurances that future NHP imports are purpose-bred, and pursuing alternative sourcing to meet client demand,” Leasure said.
You can view the full earnings report by clicking here.