- Inotiv has largely focused on pre-clinical services that is performed prior to the initiation of any clinical trials in humans.
- NOTV’s revenue declined by 38% from 2011-2016 and EBITDA turned negative in 2016.
- Revenue has grown significantly from $20mm in FY ’16 to a projected $460mm in FY’22 ($180mm excluding Envigo).
- NOTV could also be an attractive M&A candidate for any of the larger CRO’s who are looking to increase their exposure to both biotech customers as well as preclinical services.
- As investors gain more visibility into both the run-rate revenue and earnings potential of NOTV, the stock should benefit from multiple expansion in-line with other CRO peers.
For further details see:
Headwaters Capital - Inotiv: Transformation Into A Critical Full-Service Contract Research Organization