Inotiv (NOTV) Baird Global Healthcare Conference 2025 summary

Business integration and operational focus

• Integrated 14 acquisitions to build a full-service preclinical CRO, focusing on discovery to first-in-human testing.

• Optimized RMS business by reducing sites and software programs by 35%, focusing capital expenditures on remaining sites.

• Investments targeted at biotherapeutics, genetic toxicology, and surgical capabilities within the DSA business.

• Enhanced scientific and veterinary teams, improving operational performance and customer interface.

• Improved on-time delivery and reporting, with detailed tracking aligned to client expectations.

Financial performance and growth trends

• DSA business saw 27% and 25% year-over-year growth in awards in fiscal Q2 and Q3, respectively.

• Margin improvements and higher conversion rates observed, especially in Q3.

• RMS business remains stable, with further site optimization and cost reductions planned.

• Discovery business growth attributed to investments and brand recognition, not broad market recovery.

• Incremental margin in DSA is high, with discovery margins at 70%-80%.

Market dynamics and industry environment

• RMS market size is flat; changes in sales reflect market share shifts rather than overall growth.

• NHP market has shifted due to import restrictions from China and Cambodia, with increased domestic breeding and new international relationships.

• U.S. now imports about half the NHPs compared to three years ago; China’s preclinical market is growing faster than the U.S.

• Animal welfare improvements recognized with exemplary ALAC ratings.

• No clear signs of sustained market recovery; growth driven by internal improvements.