Catalent misses Q1 revenue estimates ahead of $16.5 bln deal close with Novo Holdings

Catalent

05/11/2024 13:21

Nov 5 (Reuters) - Contract drug manufacturer Catalent
 CTLT.N , which is in the process of being acquired by Novo
Holdings, posted a surprise first-quarter loss and revenue below
Wall Street estimates on Tuesday.  
    
    WHY IT'S IMPORTANT 
    The company provides filling and packaging services for
syringes and injection pens in sterile conditions, including for
Danish drugmaker Novo Nordisk's  NOVOb.CO  popular weight-loss
treatment Wegovy.
    Novo Holdings, the investment firm that has a controlling
interest in Novo Nordisk, agreed to buy Catalent in February to
boost the supply of Wegovy. 
        
  
        CONTEXT 
  
    Catalent said the deal is expected to close towards the end
of this year, after which the parent firm will sell three of the
contract manufacturer's key fill-finish sites to Novo Nordisk
for $11 billion. 
    On Monday, a regulatory filing showed EU antitrust
regulators will decide by Dec. 6 whether to clear the deal.
    In May, the U.S. Federal Trade Commission had sought more
information on the deal. 
    The deal has been criticized by some U.S. consumer and labor
groups that have urged the FTC to block it, saying it threatens
competition in the booming weight-loss drugs industry. 
    Drugmakers Roche  ROG.S  and Eli Lilly  LLY.N  have also
expressed concerns.     
   
    BY THE NUMBERS 
    Catalent's revenue for fiscal first quarter ended Sept. 30
was $1.02 billion, marginally below analysts' estimates of $1.06
billion, according data compiled by LSEG.
    Revenue from its biologics segment was $461 million, missing
expectations of $470.57 million.
    Its pharmaceuticals and consumer health segment posted sales
of $563 million, below estimates of $566.60 million.
    Catalent posted a quarterly adjusted loss of 13 cents per
share. Analysts were expecting a profit of 5 cents. 

 (Reporting by Bhanvi Satija in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))