Summary of Inotiv FY Conference Call - September 10, 2025 Company Overview - **Company**: Inotiv (NasdaqCM:NOTV) - **Industry**: Contract Research Organization (CRO) - **Business Focus**: Preclinical market, from drug discovery to first in human through the IND phase - **Current Revenue**: Approximately $500 million, up from $20 million over the past seven to eight years [3][4] Key Market Segments - **Research Models Services (RMS)**: Approximately two-thirds of the business - **Discovery and Safety Assessment (DSA)**: Remaining one-third of the business - **Addressable Market Size**: Estimated at $25 billion, with Inotiv being a small player [4][5] Strategic Developments - **Integration and Optimization**: Focus on integrating services and optimizing operations to enhance customer value and speed of delivery [6][9] - **Facility Optimization**: Reduced facilities by 30-35%, closing 10-11 locations while maintaining capacity [9] - **Transportation System**: Developed a transportation system for animal transport across the U.S. [4] Customer Focus - **Target Market**: Small to mid-sized pharmaceutical companies, addressing their unique needs [7] - **Customer Satisfaction Metrics**: Improved tracking of project timelines and customer complaints to enhance service delivery [10][18] Financial Performance - **Revenue Growth**: - RMS revenue increased by 34% year-over-year - DSA revenue increased by 8.9% year-over-year [23] - DSA business reported 25% year-over-year award growth in recent quarters [17] - **EBITDA Goals**: Aiming to return to $70-100 million in annual EBITDA, with a focus on improving quality and reducing discounting [25][28] Future Outlook - **Growth Strategy**: Continued focus on DSA as a key growth driver, with expectations of 10% volume growth to achieve financial targets [28] - **Market Positioning**: Emphasis on building a full-service DSA organization while primarily focusing on preclinical and early-stage CRO services [30][31] - **Investment in Infrastructure**: Significant investments in IT and compliance to enhance operational efficiency and regulatory adherence [21][22] Additional Insights - **NHP Business**: Noted volatility in the Non-Human Primate (NHP) market, with efforts to diversify customer and supply bases [14][19] - **Regulatory Compliance**: Enhanced compliance measures critical to operations in a heavily regulated industry [21] - **Management Philosophy**: Emphasis on embracing challenges to drive improvement and adaptability within the organization [22] This summary encapsulates the key points discussed during the Inotiv FY Conference Call, highlighting the company's growth trajectory, strategic initiatives, and future outlook in the CRO industry.