Shares of Inotiv took a significant hit, dropping by over a third, as the company adjusted its outlook due to difficulties associated with importing non-human primates for pharmaceutical testing. The stock, starting at $4.15, dwindled to as low as $4.12 on Friday, resulting in a 35% decrease. Year-to-date, shares have fallen by 15%.
Based in West Lafayette, Indiana, Inotiv, a pharmaceutical research firm, now anticipates revenue for the year to be $570 million, down from its previous guidance of $580 million. The revised forecast for adjusted earnings before interest, taxes, depreciation, and amortization is now set at a minimum of $60 million, down from $70 million.
The company attributed its lowered view to the declining availability of non-human primates in the U.S., which it sells for research purposes. Despite swinging to a third-quarter profit compared to the previous year due to lower product costs, total revenue decreased to $157.5 million from $172.7 million.
In recent years, the supply and cost of non-human primates have been severely impacted by the cessation of Chinese exports, as well as criminal charges against a supplier and two Cambodian officials. These charges were related to allegations of illegally importing animals into the U.S.
To address the supply disruptions, Inotiv has taken various measures such as closing facilities and implementing operational adjustments.
Chief Executive Robert Leasure Jr. expressed confidence in the company's future prospects, stating, "As we completed most of our planned closures and consolidations this quarter, we believe we have established a strong foundation that will enable us to prioritize operations, foster growth, and drive improved profitability."