WEST LAFAYETTE, Ind., June 10, 2024 (GLOBE NEWSWIRE) -- Inotiv, Inc. (Nasdaq: NOTV) (the "Company" or "Inotiv"), a leading contract research organization specializing in nonclinical and analytical drug discovery and development services and research models and related products and services, today provided the following business updates:
- Hillcrest, U.K. expansion project completed
- Extension of the maturity date of the $3.7 million OBRC payable note to July 2025
Robert Leasure Jr., President and Chief Executive Officer, commented, "We have substantially completed the Hillcrest, U.K. expansion and improvements, which allows for two new customers with long term contracts, to begin occupying their new space at this facility and for the transfer of our Blackthorn, U.K. operations into Hillcrest. The Hillcrest project has been another significant part of our transformation plan which we initiated in 2022. The transformation has included multiple site closures, significant investments in remaining facilities to support growth, and included investments in infrastructure, animal welfare and safety improvements.
"We are also pleased OBRC agreed to further extend the maturity date of the OBRC payable note. Inotiv will continue to evaluate opportunities to optimize our balance sheet.
"We remain focused on near-term growth initiatives, which include the ramp up of sales and marketing efforts, and the development and growth of new services. Further, we are delighted to be reaching the conclusion of major site consolidation and integration projects, with their expected efficiency gains, plus we continue to invest in animal welfare and safety initiatives. We look forward to realizing the long-term benefits of our investments as part of our efforts to transform the company into a leading global mid-sized CRO."
Hillcrest, U.K. Facilities Expansion
Inotiv's Hillcrest, U.K, expansion project is now substantially complete, and the Company is working diligently with new customers to finalize their occupancy in the expanded and upgraded facility by the end of June 2024. With the Hillcrest investments being completed, the Company will also initiate the transition of the operations of the Blackthorn, U.K. facility, to the expanded Hillcrest facility, expected to be complete by September 2024.
Extension of OBRC Payable Note
Inotiv acquired Orient BioResource Center's ("OBRC") primate quarantine and holding facility, located near Alice, Texas, in 2022. As part of the original purchase consideration, the Company agreed to leave in place a payable note owed by OBRC to the seller in the amount of $3.7 million. Originally, the payable note bore no interest and was required to be paid to the seller 18 months after the closing. The maturity date of the payable note of $3.7 million has now been extended to July 27, 2025, and will accrue interest beginning July 27, 2024 at a rate of 4.6% per annum.
About the Company
Inotiv, Inc. is a leading contract research organization dedicated to providing nonclinical and analytical drug discovery and development services and research models and related products and services. The Company's products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development, all while increasing efficiency, improving data, and reducing the cost of taking new drugs to market. Inotiv is committed to supporting discovery and development objectives as well as helping researchers realize the full potential of their critical R&D projects, all while working together to build a healthier and safer world. Further information about Inotiv can be found here: https://www.inotivco.com/.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements, including, but not limited to, statements about the Company's plans for its Hillcrest and Blackthorn, U.K. facilities and operations, and the Company's growth initiatives. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "outlook," "will," "should," "can have," "likely," and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to significant risks, uncertainties and changes in circumstances that could cause actual results and outcomes to differ materially from the forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, without limitation, the Company's inability to execute its plans for its Hillcrest and Blackthorn, U.K. facilities and operations and realize the expected benefits from these actions; the Company's inability to execute on or achieve its growth initiatives; and those that are described in the Company's most recent Annual Report on Form 10-K, in the Company's Quarterly Reports on Form 10-Q, and in other documents that the Company files or furnishes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, the Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this announcement, whether as a result of new information, future events, changes in assumptions or otherwise.
| Company Contact | Investor Relations |
| Inotiv, Inc. | LifeSci Advisors |
| Beth A. Taylor, Chief Financial Officer | Bob Yedid |
| (765) 497-8381 | (516) 428-8577 |
| btaylor@inotivco.com | bob@lifesciadvisors.com |
