An Indiana company with “critical” animal welfare violations in recent years has declared bankruptcy to restructure and resolve millions of dollars in debt.
As creditors decide how to lend a lifeline to Inotiv, however, an animal rights group is asking them to force the company to rectify the past violations as part of the overhaul.
Inotiv, based in West Lafayette, filed for Chapter 11 voluntary bankruptcy on June 3 in a Southern Texas district court. As part of the agreement, Inotiv plans to reduce its debt by around $326 million. The bankruptcy case will not impact day-to-day operations, the company said.
The bankruptcy presents an opportunity for animal activists, including People for the Ethical Treatment of Animals (PETA), to call for a change in the company’s culture after multiple animal cruelty complaints against its Indianapolis-based subsidiary Envigo RMS, including three citations just two months ago.
Inotiv describes itself as a leading contract research organization that works in nonclinical and analytical drug discovery, according to its website. In 2021, Inotiv acquired Envigo, which breeds lab animals for academic and medical research.
In April, the federal government cited Envigo for three animal welfare law violations after dozens of rabbits died at one of its Pennsylvania facilities. According to a March report, 72 rabbits died from August 2024 to March 2026 because Envigo did not provide adequate veterinary care. Envigo “instituted corrective actions” for all cited problems prior to the inspection, the report said.
Separately, Envigo pleaded guilty in June 2024 to animal welfare and water pollution crimes at a massive beagle-breeding facility in Virginia. The company agreed to pay more than $35 million in sanctions and surrender more than 4,000 beagles that were set to be sold to laboratories for drug experiments.
PETA Senior Vice President Kathy Guillermo said Inotiv’s bankruptcy should serve as a “wake-up call,” not a “bailout opportunity.”
“Any creditor considering a lifeline should demand one thing: a full pivot away from experiments on animals to state-of-the-art, human-relevant science,” Guillermo’s statement to IndyStar said, in part. “Without that, pouring in money will just prop up a failing, indefensible business model.”
Inotiv did not return an IndyStar request for comment by the time of publication.
In the company’s bankruptcy filing, Inotiv cited a highly regulated industry and environment as one of the challenges that the company is facing, noting that noncompliance can result in heavy fines, warning letters, license revocation, disqualification of data and criminal prosecution.
On its website, Inotiv says the company actively fosters a culture of care toward the animals used and bred and complies with all national and local regulations in regard to care of animals within their facilities.
IndyStar reporter Ryan Murphy contributed to this report.
Alysa Guffey writes business and development stories for IndyStar. Contact her at alysa.guffey@indystar.com.
This article originally appeared on Indianapolis Star: Indiana research org with past animal violations files for bankruptcy
Reporting by Alysa Guffey, Indianapolis Star / Indianapolis Star
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By Alysa Guffey, Indianapolis Star | USA TODAY Network
