Catalent beats revenue estimates ahead of deal close with Novo Holdings (updated)

Catalent

29/08/2024 16:46

(Updates headline, adds share movement)
       Aug 29 (Reuters) - Contract drug manufacturer Catalent
 CTLT.N  beat analysts' estimates for fourth-quarter revenue on
Thursday, helped by its biologics segment that develops and
manufactures cell and gene therapies.
 
    WHY IT'S IMPORTANT 
    The company is a contractor that does fill-finish work -
involving the filling and packaging of syringes and injection
pens in sterile conditions - for drugmakers including Danish
pharma major Novo Nordisk's  NOVOb.CO  Wegovy. 
    It also provides other contract manufacturing services.     
    
    CONTEXT
    Novo Holdings, the investment firm that has a controlling
interest in Novo Nordisk, signed a $16.5 billion deal to buy
Catalent in February to boost Wegovy supply.
    The deal is expected to close toward the end of this year,
after which the parent firm will sell three of Catalent's key
fill-finish sites to Novo Nordisk for $11 billion.
    The sites are in Anagni, Italy; Brussels, Belgium, and
Bloomington, Indiana.
    The U.S. Federal Trade Commission in May sought more
information on the deal, after Novo Holdings prefiled an
application seeking the antitrust agency's nod.
    
    BY THE NUMBERS 
    Revenue for the fourth quarter ended June 30 was $1.3
billion, compared to analysts' average estimate of $1.22
billion, according to LSEG data.
    Catalent posted an adjusted profit of 65 cents per share,
topping estimates of 47 cents.
    Its biologics segment recorded revenue of $605 million,
compared to the average estimate of $502.97 million.
    Its pharmaceuticals and consumer health segment posted sales
of $697 million, compared to estimates of $704.87 million.
    Shares of the company were 1.1% higher in late morning
trading. 

 (Reporting by Sriparna Roy and Mariam Sunny in Bengaluru;
Editing by Sriraj Kalluvila)
 ((Sriparna.Roy@thomsonreuters.com;))