Inotiv Inc falls after Jefferies downgrades on potential headwind to revenue

Inotiv

19/01/2023 18:16

** Shares of contract drug researcher Inotiv Inc  NOTV.O 
fall ~19% to $6.12 
    ** Brokerage Jefferies downgrades co to "hold" from "buy",
citing issues in sourcing non-human primates (NHP) and high
price increases
    ** Trims PT to $8 from $10, says it expects a $140 mln
headwind to revenue
    ** NOTV executives at its main supplier in Cambodia were
charged of violations of U.S. endangered species law for
illegally importing NHPs which are essential in animal models in
biomedical research, co disclosed in Nov. 2022
    ** NOTV  does  expect  a  resolution  with  the  Cambodian 
supplier or a contractual volume increase in FY23 from its
Mauritian supplier - Brokerage
    ** Brokerage says co's 2023 revenue forecast was better than
feared; says biggest driver is a 65% to 100% increase in prices
for NHP
    ** Models 2023 revenue growth of 14% but that will need
stability in B2B - Jefferies
    ** NOTV lost ~88% in 2022
 (Reporting by Sriparna Roy)
 ((Sriparna.Roy@thomsonreuters.com;))