Inotiv is a contract research organization (CRO) that provides nonclinical drug discovery and development services and sells research animals to pharmaceutical, biotech, academic, and government clients. The company operates through two segments. Discovery and Safety Assessment (DSA, ~37% of revenue) conducts preclinical studies on behalf of drug developers, covering early-stage discovery through regulatory-grade safety studies required to file an IND with the FDA. Clients are mostly small and mid-size biotech and pharma companies. DSA is a fee-for-service business with a largely fixed cost structure, meaning revenue growth converts at high incremental margins — management estimates 50-60% for safety assessment and 70-80% for discovery services. Research Models and Services (RMS, ~63% of revenue) breeds and sells laboratory animals — primarily rodents and nonhuman primates (NHPs) — along with Teklad-branded diets, bedding, and enrichment products. Rodents and diet products are a high-fixed-cost production business, while NHPs are a buy-and-resell business with volatile margins tied to global supply chains, tariffs, and spot pricing. RMS also provides colony management services, where clients pay Inotiv to house and breed NHPs they own. Inotiv has been consolidating RMS facilities, closing roughly 60% of its North American site count over three years to reduce fixed costs. The company carries ~$400M in debt from acquisitions made between 2018 and 2022, with near-term maturities in late 2026 and 2027.