Catalent beats revenue estimates ahead of deal close with Novo Holdings
Written By : MD Bureau Team
Published On 2024-09-01 08:00 GMT | Update On 2024-09-01 08:00 GMT
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Bengaluru: Contract drug manufacturer Catalent 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 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 per cent higher in late morning trading.
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