Inotiv, Inc. Announces Closure and Consolidation of Sites
WEST LAFAYETTE, Indiana, June 13, 2022 (GLOBE NEWSWIRE) — Inotiv, Inc. (NASDAQ: NOTV) (the “Company”, “We”, “Our” or “Inotiv”), a leading contract research organization specializing in non-clinical and analytical drug discovery and development services and research models and related products and services, announces the closure of two Envigo RMS (“Envigo”) facilities in Virginia: a specialty canine facility in Cumberland and a rodent breeding facility in Dublin as part of restructuring activities following its acquisition from Envigo RMS LLC in November 2021.
Robert Leasure, Jr., President and CEO of Inotiv, said, “Since the acquisition of Envigo in November 2021, the Cumberland, Virginia facility has been recognized as in need of improvements and of investments. Inotiv has been pleased with the continued and significant progress in improvements at the Cumberland plant since the acquisition, as evidenced by recent inspections by USDA and other auditing organizations. We sincerely appreciate the contributions of our customers, employees and third parties to date in support of this facility. The investment required to improve the installation and the time to achieve these improvements have recently increased. Therefore, we have decided to no longer invest in this facility and it will be closed. We will put in place an orderly closure plan. Cumberland represents less than 1% of our total Inotiv revenue and has not contributed to earnings in our Research Models and Services segment since the acquisition.
Leasure continued, “The announced closure of the Dublin, Virginia facility is part of Inotev’s ongoing site restructuring and optimization plan, which includes the previously announced closure of the Haslett, Michigan facility, and Boyertown, Pennsylvania. The closure of the Dublin facility will also reduce anticipated capital expenditure requirements at this site. Current production in Dublin will be moved to other facilities which have recently been extended or refurbished. We are confident that our site restructuring and optimization plan will provide the company with additional operational efficiencies and allow customers to be better served from existing and renovated sites. We expect the transition of these three facilities to be complete by December 2022.”
The announced closures of the Cumberland and Dublin facilities will not impact the Company’s financial guidance for fiscal 2022.
Inotiv, Inc. is a premier contract research organization dedicated to providing nonclinical and analytical drug discovery and development services, research models, and related products and services. The Company’s products and services aim to bring new drugs and medical devices through the discovery and preclinical development phases, while increasing efficiency, improving data and reducing the cost of bringing new products to market. medications. Inotiv is committed to supporting discovery and development goals as well as helping researchers realize the full potential of their critical R&D projects, while working together to build a healthier and safer world. Further information about Inotiv can be found here: https://www.inotivco.com/.
This release may contain forward-looking statements that are subject to risks and uncertainties, including, but not limited to, risks and uncertainties relating to changes in the market and demand for our products and services, the development, marketing and sale of products and services, changes in technology, industry and regulatory standards, the timing of acquisitions and the success of their closing, their integration and their commercial and financial impact, government regulations, inspections and investigations, the impact of site closures and consolidations, expansion and related efforts, and various other market and operating risks, including those detailed in Company filings with the United States Securities and Exchange Commission.