Catalent beats revenue estimates ahead of deal close with Novo Nordisk parent

Catalent

29/08/2024 13:03

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 the main supplier of fill-finish work -
involving the filling and packaging of syringes and injection
pens in sterile conditions - including for Danish pharma major
Novo Nordisk's  NOVOb.CO  Wegovy. 
    U.S. rival Lilly  LLY.N , which makes the weight-loss drug
Zepbound, also relies on one of Catalent sites for its GLP-1 and
other diabetes compounds production. 
        
    
    CONTEXT
    Novo Nordisk's parent Novo Holdings 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's parent had refiled an
application seeking the antitrust agency's nod.
    Earlier this month, Eli Lilly CEO David Ricks said that
concerns regarding the deal remain, noting the "oddity of your
main competitor being also your contract manufacturer."
    
    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.

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