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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.

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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

2. Inotiv's Q1 2026 Earnings: A Mixed Bag

Inotiv reported total revenue of $120.9 million for the first quarter of fiscal 2026, a modest increase from $119.9 million in the same period last year. The company's Discovery Sciences and Services (DSA) business drove this growth, with revenue increasing 12% year-over-year to $48 million. However, the Research Models and Services (RMS) segment continued to face challenges, with revenue declining 5.4% to $72.9 million. The overall operating loss for the quarter was $16.3 million, a slight increase from $15.5 million in Q1 2025. The actual EPS loss was $0.72, wider than the estimated loss of $0.638.

Publication Date: Mar -09

📋 Highlights
  • DSA Revenue Growth: DSA revenue rose 12% YoY to $48M in Q1 2026, driven by discovery pharmacology and surgical services.
  • Strong DSA Margins: DSA achieved its highest 3-year margin in Q1 2026, supported by increased service revenues.
  • Net New DSA Awards: Booked $53.6M in new DSA awards, a 27% increase YoY, with a 1.16:1 book-to-bill ratio.
  • RMS Revenue Decline: RMS revenue fell 5.4% YoY to $72.9M, impacted by 25% lower NHP business volume.
  • Operating Loss Expansion: Total operating loss widened to $16.3M in Q1 2026, up $0.8M YoY, driven by RMS margin pressures.

DSA Business: A Bright Spot

The DSA business saw significant growth, driven by a 27% increase in awards to $53.6 million. The book-to-bill ratio for DSA was 1.16:1, indicating a healthy pipeline of future revenue. The backlog conversion rate was 33.2%, slightly higher than the prior year's 32.8%. As Robert Leasure mentioned, "We've made significant progress in our DSA business, with a strong focus on customer satisfaction and scientific strength."

RMS Challenges Persist

The RMS business continued to face headwinds, with revenue declining 5.4% year-over-year due to lower volume sales in the NHP business. The operating loss for RMS increased by $2.4 million, partially offset by an increase in DSA operating income. Leasure attributed the decline to "lower volume sales impacted our RMS revenues and margins compared to last year."

Valuation Metrics

Inotiv's valuation metrics indicate a challenging financial situation. The company's Price-to-Sales Ratio is 0.02, and the EV/EBITDA ratio is 21.56. The Return on Invested Capital (ROIC) is -4.08%, and the Return on Equity (ROE) is -50.77%. The Net Debt to EBITDA ratio is 21.04, indicating a high level of debt. Analysts estimate revenue growth of 5.4% for the next year, but the current valuation metrics suggest that the stock may be priced for a more optimistic outlook.

Future Outlook

Inotiv's management is focused on executing its plans, with a emphasis on cost reductions and improving profitability. The company's progress in DSA and its efforts to optimize the RMS business will be crucial in determining its future success. As Leasure stated, "We're pleased with our recent growth in DSA revenue and continued focus on customer satisfaction, integration, and cost reductions in RMS." However, the challenges in the RMS business and the high debt levels will need to be addressed for the company to achieve long-term success.

3. NewsRoom

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Inotiv Provides Notice Regarding Cybersecurity Incident

Feb -13

Source: globenewswire.com

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Inotiv, Inc. (NOTV) Q1 2026 Earnings Call Transcript

Feb -09

Source: seekingalpha.com

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Inotiv Reports First Quarter Financial Results for Fiscal 2026 and Provides Business Update

Feb -09

Source: globenewswire.com

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Inotiv, Inc. to Report Fiscal 2026 First Quarter Financial Results and Host Conference Call on Monday, February 9, 2026

Feb -04

Source: globenewswire.com

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Ernexa Therapeutics (NASDAQ:ERNA) vs. Inotiv (NASDAQ:NOTV) Critical Review

Jan -15

Source: defenseworld.net

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Inotiv Leverages LifeNet Health Proprietary Platform to Advance New Approach Methodologies in Translational Drug Discovery

Jan -13

Source: globenewswire.com

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Inotiv Partners with VUGENE to Advance AI-Driven Drug Discovery and Bioinformatics Capabilities

Dec -11

Source: globenewswire.com

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

Dec -04

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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
DermTech

A-Score: 3.8/10

Value: 10.0

Growth: 3.3

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 0.3

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VolitionRx

A-Score: 3.7/10

Value: 8.0

Growth: 6.3

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Bionano Genomics

A-Score: 3.3/10

Value: 10.0

Growth: 4.3

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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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 ->

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Aclaris Therapeutics

A-Score: 3.2/10

Value: 6.7

Growth: 6.7

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Inotiv

A-Score: 2.8/10

Value: 9.0

Growth: 3.1

Quality: 2.1

Yield: 0.0

Momentum: 2.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.45$

Current Price

0.45$

Potential

-0.00%

Expected Cash-Flows