Inotiv, Inc. (NOTV) | Investment Case

1. Company Snapshot

1.a. Company Description

Inotiv, Inc.provides drug discovery and development services to the pharmaceutical, chemical, and medical device industries; and sells analytical instruments to the pharmaceutical development and contract research industries.It operates through two segments, Contract Research Services and Research Products.

The Contract Research Services segment offers screening and pharmacological testing, nonclinical safety testing, formulation development, regulatory compliance, and quality control testing services.This segment provides analytical method development and validation; drug metabolism, bioanalysis, and pharmacokinetics testing to identify and measure drug and metabolite concentrations in complex biological matrices; in vivo sampling services for the continuous monitoring of chemical changes in life; stability testing to ensure the integrity of various solutions used in nonclinical and clinical studies, and post-study analyses; non-clinical toxicology and pathology services; and climate-controlled archiving services for its customers' data and samples.The Research Products segment designs, develops, manufactures, and markets in vivo sampling systems and accessories, including disposables, training, and systems qualification; physiology monitoring tools; liquid chromatography and electrochemistry instruments platforms; analytical products comprising liquid chromatographic and electrochemical instruments with associated accessories; and in vivo sampling products consisting of Culex family of automated in vivo sampling and dosing instruments.

The company operates in the United States, rest of North America, the Pacific Rim, Europe, and internationally.It has an agreement with BioVaxys to conduct preclinical toxicity studies for its Covid-T Immunodiagnostic program.The company was formerly known as Bioanalytical Systems, Inc.

and changed its name to Inotiv, Inc.in March 2021.Inotiv, Inc.

was founded in 1974 and is headquartered in West Lafayette, Indiana.

Show Full description

1.b. Last Insights on NOTV

Negative drivers behind Inotiv's recent performance include a decline in revenue growth, primarily due to a decrease in contract research organization (CRO) services. The company's Q1 2025 earnings call revealed a 10% year-over-year decline in CRO revenue, driven by lower demand for nonclinical and analytical drug discovery services. Additionally, Inotiv's research models and related products segment also experienced a decline in revenue, contributing to the overall revenue shortfall.

1.c. Company Highlights

Last Price	0.85
Change Percentage	-3.85%
Open	0.87
Previous Close	0.88
Market Cap ( Millions)	29
Volume	116943
Year High	6.48
Year Low	0.66
M A 50	1.2
M A 200	1.93

FCF Yield	-159.69%
Dividend Yield	0.00%
ROE	-54.86%
Debt / Equity	300.69%
Net Debt / EBIDTA	1173.29%
Price To Book	0.21
Price Earnings Ratio	-0.35
Price To FCF	-0.63
Price To sales	0.06
EV / EBITDA	12.61

2. Inotiv's Q3 Fiscal 2025 Earnings: A Strong Quarterly Performance

Inotiv reported a robust third quarter fiscal 2025, with revenue increasing 23.5% year-over-year to $130.7 million, driven by a 34.1% growth in RMS segment revenue to $82.5 million and an 8.9% increase in DSA segment revenue to $48.2 million. The company's net loss for the quarter was $17.6 million, an improvement from the $26.1 million loss in the same period last year. Adjusted EBITDA was $11.6 million, or 8.9% of total revenue. The actual EPS came out at '-0.12', beating estimates of '-0.15'. The company's DSA operating margins improved 4.6% over the previous quarter, although they were still 0.8% lower than the same period last year. RMS operating margins were 19.8% higher than the prior year quarter.

Publication Date: Aug -26

                                    📋 Highlights
                                    Revenue Growth::
                                                23.5% YoY increase to $130.7 million, driven by 34.1% RMS segment growth ($82.5M) and 8.9% DSA segment growth ($48.2M).
Net Loss Reduction::
                                                Loss narrowed to $17.6 million (vs. $26.1M prior year), with Adjusted EBITDA at $11.6 million (8.9% of revenue).
RMS Margin Expansion::
                                                Operating margins up 19.8% YoY, while DSA margins improved 4.6% QoQ but declined 0.8% YoY.
Facility Optimization::
                                                30% reduction in operational sites over three years, enhancing capacity efficiency without new facility additions.
Balance Sheet Strategy::
                                                $396.5 million total debt (as of June 30, 2025), with $15 million revolver unused, and plans for capital structure review with a third-party advisor.

                                

Balance Sheet and Capital Structure Review

The company has a $15 million revolver with no outstanding balance, although they recently requested a $3 million draw on their revolving credit facility. Total debt, net of debt issuance costs, was $396.5 million as of June 30, 2025. Cash used in operating activities was $24.8 million for the 9 months ended June 30, 2025. Capital expenditures in the third quarter of fiscal 2025 were $4 million or approximately 3.1% of total revenue. As Robert Leasure noted, "We're a much better company today than ever before, but we still have a plan for further improvement in the future," highlighting the company's commitment to prioritizing a strategic review of its capital structure and improving its balance sheet.

Operational Highlights and Future Outlook

The company has made significant progress in integrating its services and improving its facility footprint, with 30% fewer sites compared to three years ago. It has also strengthened its scientific group, with a significant increase in licensed veterinarians and board-certified veterinary pathologists. The company remains committed to building a business that will create value for its clients, employees, and shareholders, despite continued geopolitical and macroeconomic uncertainties. Analysts estimate next year's revenue growth at 5.3%.

Valuation Metrics

With a P/S Ratio of 0.12 and an EV/EBITDA of 24.22, the market appears to be pricing in a relatively modest growth trajectory for Inotiv. The company's ROE and ROIC are currently negative, at -49.21% and -1.89% respectively, although this is expected given the net loss. The Net Debt / EBITDA ratio is high at 21.24, highlighting the company's leverage. These metrics suggest that while the company's financial performance is improving, there is still a risk that the current valuation may not fully reflect the company's potential for future growth.

3. NewsRoom

Inotiv, Inc. (NOTV) Q4 2025 Earnings Call Transcript

Dec -04

Source: seekingalpha.com

Inotiv Reports Fourth Quarter and Full Year Financial Results for Fiscal 2025 and Provides Business Update

Dec -03

Source: globenewswire.com

Inotiv Ranked Number 182nd Fastest-Growing Company in North America on the 2025 Deloitte Technology Fast 500™

Nov -25

Source: globenewswire.com

Inotiv, Inc. to Report Fiscal 2025 Fourth Quarter and Full Year Financial Results and Host Conference Call on Wednesday, December 3, 2025

Nov -21

Source: globenewswire.com

Inotiv, Inc. Announces Preliminary Fiscal 2025 Fourth Quarter and Full Year Results

Nov -17

Source: globenewswire.com

Halper Sadeh LLC Encourages Inotiv, Inc. Shareholders to Contact the Firm to Discuss Their Rights

Oct -24

Source: businesswire.com

Inotiv, Inc. to Participate in Three Investor Conferences in September 2025

Aug -13

Source: globenewswire.com

Inotiv, Inc. (NOTV) Q3 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.49%)

6. Segments

Research Models and Services- Product

Expected Growth: 2%

Inotiv's Research Models and Services product growth is driven by increasing demand for preclinical research, outsourcing of R&D services by pharmaceutical companies, and advancements in gene therapy and regenerative medicine. Additionally, the rising need for personalized medicine and targeted therapies fuels growth, as Inotiv's products support the development of novel treatments.

Discovery and Safety Assessment- Service

Expected Growth: 3%

Inotiv's Discovery and Safety Assessment service growth is driven by increasing demand for non-clinical contract research, rising R&D investments in pharmaceutical and biotechnology industries, and growing need for outsourced services to accelerate drug development. Additionally, advancements in gene therapy and rare disease research are fueling growth in this segment.

Research Models and Services- Service

Expected Growth: 4%

Inotiv's Research Models and Services segment growth is driven by increasing demand for preclinical research, outsourcing of R&D services by pharmaceutical and biotechnology companies, and expansion into new therapeutic areas. Additionally, strategic acquisitions and investments in digitalization and automation are enhancing operational efficiency and driving revenue growth.

Discovery and Safety Assessment- Product

Expected Growth: 5%

Inotiv's Discovery and Safety Assessment product growth is driven by increasing demand for outsourced preclinical research, rising R&D investments in pharmaceutical and biotechnology industries, and growing need for safety assessment services. Additionally, advancements in gene therapy and regenerative medicine, as well as the COVID-19 pandemic, have accelerated the adoption of Inotiv's services, contributing to its 5% growth.

7. Detailed Products

Non-Clinical Services

Inotiv provides non-clinical services, including toxicology, pharmacology, and pharmacokinetics studies to support the development of new drugs and therapies.

Clinical Services

Inotiv offers clinical services, including early phase clinical trials, bioanalytical services, and clinical pharmacology studies to support the development of new drugs and therapies.

Discovery Services

Inotiv provides discovery services, including target identification, lead optimization, and candidate selection to support the discovery of new drugs and therapies.

Regulatory Services

Inotiv offers regulatory services, including regulatory consulting, compliance, and auditing to support the development and approval of new drugs and therapies.

Bioanalytical Services

Inotiv provides bioanalytical services, including method development, validation, and sample analysis to support the development of new drugs and therapies.

8. Inotiv, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Inotiv, Inc. operates in a niche market with limited substitutes, but there are some alternatives available, making the threat of substitutes medium.

Bargaining Power Of Customers

Inotiv, Inc. has a diverse customer base, and no single customer has significant bargaining power, making the bargaining power of customers low.

Bargaining Power Of Suppliers

Inotiv, Inc. relies on a few key suppliers, but there are alternative suppliers available, making the bargaining power of suppliers medium.

Threat Of New Entrants

The biotechnology industry is highly competitive, and new entrants can easily enter the market, making the threat of new entrants high.

Intensity Of Rivalry

The biotechnology industry is highly competitive, and there are many established players, making the intensity of rivalry high.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	60.81%
Debt Cost	12.20%
Equity Weight	39.19%
Equity Cost	20.79%
WACC	15.57%
Leverage	155.17%

11. Quality Control: Inotiv, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Aclaris Therapeutics

A-Score: 4.7/10

Value: 6.8

Growth: 6.7

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

VolitionRx

A-Score: 4.1/10

Value: 8.0

Growth: 6.4

Quality: 6.1

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

1-Year Total Return ->

Inotiv

A-Score: 3.6/10

Value: 9.8

Growth: 3.2

Quality: 4.6

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

1-Year Total Return ->

DermTech

A-Score: 3.6/10

Value: 10.0

Growth: 3.3

Quality: 2.7

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

T2 Biosystems

A-Score: 3.2/10

Value: 10.0

Growth: 4.7

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Bionano Genomics

A-Score: 3.1/10

Value: 9.8

Growth: 4.3

Quality: 3.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

27.44%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

15.57%

Inotiv, Inc. - US45783Q1004

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NOTV

1.c. Company Highlights

Lower Quality

Higher Growth

Cheaper

Earnings Miss

Revenues Miss

More Volatile

Stable Momentum

Fairly Valued

Weak Momentum

Earnings Beats

Revenues Beats

Average Growth

Strong Momentum

2. Inotiv's Q3 Fiscal 2025 Earnings: A Strong Quarterly Performance

Balance Sheet and Capital Structure Review

Operational Highlights and Future Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.49%)

6. Segments

Research Models and Services- Product

Expected Growth: 2%

Discovery and Safety Assessment- Service

Expected Growth: 3%

Research Models and Services- Service

Expected Growth: 4%

Discovery and Safety Assessment- Product

Expected Growth: 5%

7. Detailed Products

Non-Clinical Services

Clinical Services

Discovery Services

Regulatory Services

Bioanalytical Services

8. Inotiv, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Inotiv, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.85$

Current Price

0.85$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA