Inotiv (NOTV) Jefferies Global Healthcare Conference 2025 summary

Business performance and momentum

• Recent quarters showed improved bookings, with a near 1-to-1 book-to-bill ratio and positive momentum into the current quarter.

• Discovery Translational Sciences is leading recovery, with year-over-year growth in awards and a new scientific, business-to-business sales approach.

• DSA segment margins are expected to improve through better capacity utilization, pricing, and lower input costs.

• Repeat business and client satisfaction have improved due to investments in systems and customer experience.

• Large pharma remains a small portion of DSA sales but is growing, especially in genetic toxicology and discovery services.

Segment and client trends

• Discovery accounts for about 25% of DSA, with the rest from safety assessment, including Gen Tox and biotherapeutics.

• Cross-selling between discovery and safety assessment is increasing, creating stickier client relationships.

• Focus remains on expanding recurring customer base and increasing client use of multiple services and sites.

• Large pharma is pursued selectively to avoid overreliance on any single client.

RMS and NHP market dynamics

• RMS margins have improved, with further cost reductions of $6–8 million targeted and new capacity for quality management services.

• NHP import volumes have halved over three years, with no expectation of recovery to previous levels.

• NHP pricing has stabilized within a 10% range over the past year, reducing margin volatility.

• Quality management and domestic boarding/breeding are mitigating risks from tariffs and supply constraints.