Catalent Q2 sales inch past estimates amid takeover by Novo Holdings (updated)

Catalent

09/02/2024 14:13

(Adds background throughout, loss figures in paragraph 11,
updates shares)
       Feb 9 (Reuters) - Catalent  CTLT.N  reported
second-quarter revenue slightly above Wall Street estimates on
Friday, days after the contract drug manufacturer agreed to a
$16.5-billion acquisition offer from Novo Nordisk's  NOVOb.CO 
parent firm. 
    The company is the main supplier of fill-finish work -
involving filling and packaging syringes and injection pens in
sterile conditions - for Novo's popular weight-loss drug,
Wegovy.
    Novo Holdings' takeover follows a strategic review
undertaken as part of Catalent's settlement with activist
investor Elliott Investment Management in August. 
        The New Jersey-based manufacturing subcontractor has
struggled with production challenges and regulatory 
    inspections
     at its key facilities.
  
    "With the benefit of Novo Holdings’ expanded resources, we
will be able to accelerate investment in our business and
enhance key offerings for current and prospective pharma and
biotech customers," CEO Alessandro Maselli said. 
    Catalent, which provides services to drugmakers like Sarepta
Therapeutics  SRPT.O , Eli Lilly  LLY.N  and AstraZeneca
 AZN.L , took on a $600-million loan to repay some of its other
debt during the quarter.
        It had about $1.3 billion in liquidity as of
December-end. 
  
        After the deal closes, Novo Holdings will sell three of
Catalent's key fill-finish sites in Anagni, Italy, Brussels,
Belgium and Bloomington, Indiana, to Novo Nordisk for $11
billion.
    The Belgium and U.S. sites, which already undertake
fill-finish work for Wegovy, will eventually stop producing
drugs for other pharma companies.
        Revenue for the second quarter was $1.03 billion,
compared to analysts' estimate of $1.01 billion, according to
LSEG data, helped by improved production across Catalent's key
facilities.
  
        It reported a wider-than-expected loss of 24 cents on an
adjusted basis, compared to analysts' average estimate of a loss
of 2 cents.
  
        Shares were marginally down at $56.41 in premarket
trading.
  
        Catalent said it would not host a post-earnings
conference call this quarter.
  

 (Reporting by Sriparna Roy and Bhanvi Satija in Bengaluru;
Editing by Pooja Desai)
 ((Sriparna.Roy@thomsonreuters.com;))