Inotiv Stock Plunges 10.64% on FDA's Animal Testing Shift

Inotiv's stock price plummeted by 10.64% in pre-market trading on April 11, 2025, following a significant announcement from the Food and Drug Administration (FDA).

The FDA declared its intention to transition away from animal testing methods, opting instead for more effective and human-relevant approaches in the development of monoclonal antibody therapies and other drugs. This regulatory shift is expected to have a profound impact on companies that have traditionally relied on animal testing, including Inotiv.

This decision by the FDA marks a pivotal moment in the regulatory landscape, as it signals a move towards more modern and ethical testing methods. The shift is likely to force companies like Inotiv to adapt their practices, potentially leading to increased costs and operational challenges in the short term.

Investors are closely monitoring the situation, as the transition away from animal testing could reshape the industry dynamics. Companies that can quickly pivot to new testing methods may gain a competitive advantage, while those that struggle to adapt may face significant headwinds.