West Lafayette-based Inotiv Inc. (Nadaq: NOTV) says it will close two facilities in Virginia that are currently operated by its Indianapolis-based subsidiary, Envigo RMS. One of the facilities is a dog breeding facility in Cumberland that is the subject of a lawsuit alleging animal welfare law violations.
Inotiv says the closure of the Cumberland facility, as well as a rodent breeding facility in Dublin, Virginia is part of a restructuring following the company’s $545 million acquisition of Envigo last November.
According to the lawsuit filed last month, multiple federal inspections resulted in dozens of violations, including findings that dogs had received inadequate medical care and insufficient food, were housed in filthy conditions, and some had been euthanized without first receiving anesthesia.
The inspections also found hundreds of dogs dead at the facility. Officials also recently seized 145 beagles in “acute distress” at the facility.
Inotiv CEO Robert Leasure says the company recognized the need for improvements and investments at the facility since the company acquired Envigo.
“Inotiv has been pleased with the continued and significant progress in improvements at the Cumberland facility since the acquisition, as evidenced by recent inspections by the USDA and other auditing organizations,” Leasure said in written remarks. “The required investments to improve the facility and the lead time to achieve these improvements have recently increased. As a result, we have decided we will not be investing further in this facility, and it will be closed.”
Leasure says the Cumberland facility comprises less than 1% of the company’s total revenue and has not contributed to profits since the Envigo acquisition.
Inotiv adds production at the Dublin facility will be relocated to other facilities that have been recently expanded or refurbished.
The transitions are expected to be complete by December. Inotiv did not specify if any jobs would be affected.
The Associated Press contributed to this report.