Catalent Reports Fourth-Quarter Earnings

(Reuters) – Contract drug manufacturer Catalent (NYSE:CTLT) surpassed analysts’ estimates for fourth-quarter revenue on Thursday, driven by its biologics segment, which develops and manufactures cell and gene therapies.

Why It’s Important

The company specializes in fill-finish work, focusing on the filling and packaging of syringes and injection pens in sterile conditions for various drugmakers, including Danish pharmaceutical giant Novo Nordisk (NYSE:NVO) with their product Wegovy. Catalent also offers other contract manufacturing services.

Context

In February, Novo Holdings, the investment firm controlling Novo Nordisk, announced a $16.5 billion deal to acquire Catalent, aiming to enhance Wegovy supply. The transaction is anticipated to finalize by year-end, after which Novo Nordisk will purchase three of Catalent’s primary fill-finish sites for $11 billion. The facilities are located in Anagni, Italy, Brussels, Belgium, and Bloomington, Indiana. In May, the U.S. Federal Trade Commission sought additional details on the deal following Novo Holdings’ pre-application submission to the antitrust agency.

By the Numbers

Revenue for the fourth quarter ending June 30 reached $1.3 billion, exceeding analysts’ average estimate of $1.22 billion, according to LSEG data. Catalent reported an adjusted profit of 65 cents per share, surpassing estimates of 47 cents. Its biologics segment achieved revenue of $605 million, exceeding the average estimate of $502.97 million. In contrast, its pharmaceuticals and consumer health segment generated $697 million, slightly below estimates of $704.87 million. Catalent’s shares were 1.1% higher in late morning trading.